The shares are offered by a company and public subscribed more than the number of shares offered for issue. The possibilities arise in this case are :

A. Allot shares on Pro-Rata basis to all the apllicants

B. Public never subscribe more than number of share offered.

C. Reject the excess applications.

D. SEBI guidelines says only 10% of over subscription can be made on pro-rata basis rest amount has to be refunded.

E. Pro-rata allotment to some applicants and full allotment to some application.

Choose the correct answer from the options  given below :

A, C and E only

The correct answer is option 3- A, C and E only.

In a case of oversubscription, three alternatives are available to the directors to deal with the situation:
(1) they can accept some applications in full and totally reject the others;
(2) they can make a pro-rata allotment to all; and
(3) they can adopt a combination of the above two alternatives which happens to be the most common course adopted in practice.

Thus, only A, C and E are correct. Others are incorrect.