If the company fails to receive the minimum subscription within the stipulated time period, the company cannot proceed for the allotment of shares and application money should be returned within how many days of the date of issue of prospectus?

130 days

Correct answer: Option (3) → 130 days

Concept: Refund of application money when the minimum subscription is not received, from Accounting for Share Capital.

If the company fails to receive the minimum subscription within 120 days, it cannot proceed to allotment, and the application money must be returned within 130 days of the date of issue of the prospectus. Hence Option (3).