Accountancy Part AAccounting for Shares

The process of receiving minimum subscription of 90% of the entire is…

The process of receiving minimum subscription of 90% of the entire issue must be completed within _________ days from date of issue of prospectus.

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → 120 days

NCERT (2026-27 edition):
Issue of Shares – “… The company has to get minimum subscription within 120 days from the date of the issue of the prospectus. If the company fails to receive the same within the said period, the company cannot proceed for the allotment of shares and application money should be returned within 130 days of the date of issue of prospectus.”