Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

In case of rejected applications, what is the time frame within which the money should be returned to the applicants?

Options:

Within a week of rejection

At the company's discretion

Within the period prescribed by law/SEBI

Within the fiscal year

Correct Answer:

Within the period prescribed by law/SEBI

Explanation:

When applications for shares are rejected, there is a regulatory requirement for the company to return the application money to the applicants within a specific period of time, as prescribed by laws and regulations, including those set by SEBI (Securities and Exchange Board of India) or other relevant regulatory bodies.