Question

Minimum subscription of capital cannot be less than ................... amount according to SEBI (Disclosure and Investor Protection) Guidelines, 2000.

• A. 60% of the issued
• B. 70% of the issued
• C. 80% of the issued
• D. 90% of the issued

Hint:

SEBI 2000 guidelines set minimum subscription at 90% of the issue.

Answer 1

The Correct Option is D

Step 1: Recall the rule:
The regulator wants a new issue to be nearly fully subscribed before allotment. This protects investors from a company that has not raised enough money for its plan.

Step 2: State the figure:
The SEBI guidelines of 2000 fix this floor at 90% of the issue. Below this, no allotment can be made, and money is refunded.

Step 3: Compare with the choices:
Since 90% is the floor, any smaller figure such as 60%, 70% or 80% cannot be the minimum. So the answer is the fourth option.

Final Answer:
Option (4). \[ \boxed{90\% \text{ of the issued amount}} \]