Can a company allot more debentures than it has invited for subscription in case of oversubscription?

No, it cannot allot more debentures than it has invited for subscription

The correct answer is option 2- No, it cannot allot more debentures than it has invited for subscription.

In the case of oversubscription, a company cannot allot more debentures than it has initially invited for subscription. This is a fundamental principle in the issuance of securities. When a company issues a certain number of debentures for subscription, it sets a limit on the maximum number of debentures that can be allotted based on its offering. Oversubscription occurs when the number of debentures applied for exceeds the number of debentures offered by the company. While the company can retain the excess money received for adjustment towards allotment and future calls, it cannot exceed the original number of debentures it initially intended to issue.