If the condition of the minimum subscription is not satisfied, the company shall refund the entire subscription amount received. If a delay occurs beyond 8 days from the date of closure of the subscription list, the company shall be liable to pay the amount with interest at the rate of............

5% 10% 15% 20%

15%

It is to be noted that ‘minimum subscription’ of capital cannot be less than 90% of the issued amount according to SEBI (Disclosure and Investor Protection) Guidelines, 2000 [6.3.8.1 and 6.3.8.2]. 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)].