Practicing Success
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Minimum Subscription of capital : |
Can be less than 90% of the Issued capital Should be equal to at least 50% of Authorised Capital Should be in the range of 80% to 90% of the Issued capital Can not be less than 90% of the Issued amount |
Can not be less than 90% of the Issued amount |
The correct answer is Option (4) - Can not be less than 90% of the Issued amount The company is required to attain a minimum subscription within 120 days from the issuance of the prospectus. If this requirement is not met within the specified time frame, the company cannot proceed with the allotment of shares, and it must refund the application money within 130 days from the prospectus issuance date. It's important to note that as per SEBI (Disclosure and Investor Protection) Guidelines, 2000 [6.3.8.1 and 6.3.8.2], the minimum subscription of capital cannot be less than 90% of the total amount offered. |
