Question

The minimum amount of capital which must be subscribed by the public before allotment is called:

• A. allotment money
• B. minimum subscription
• C. subscribed capital
• D. None of these

Hint:

No allotment of shares can be made unless the minimum subscription (at least 90% of issue) is received.

Answer 1

The Correct Option is B

Step 1: Definition of Minimum Subscription
Minimum Subscription is the lowest amount a company must raise through share issuance before legally allocating those shares.
Step 2: Legal Mandate 
SEBI regulations stipulate that a minimum of 90% of the issued amount must be subscribed. 
Step 3: Distinguishing from Related Terms 
Allotment money represents a single payment installment. 
Subscribed capital denotes the total amount applied for.
Option (B) accurately states the requirement for allotment.