CUET Preparation Today
| What is done by the company if the minimum subscription is not received by the company? |
Pro-rata allotment Undersusbcription Oversubscription Refund the entire application money |
| Refund the entire application money |
| ‘Minimum subscription’ of capital cannot be less than 90% of the issued amount according to SEBI (Disclosure and Investor Protection) Guidelines, 2000. If this condition is not satisfied, the company shall forthwith refund the entire subscription amount received. If a delay occurs beyond 8 days from the date of closure of subscription list, the company shall be liable to pay the amount with interest at the rate of 15% [Section 73(2)]. |
