Match the following- LIST 1 LIST 2 (A) Over Subscription (I) Minimum…

Match the following-

LIST 1	LIST 2
(A) Over Subscription	(I) Minimum amount that must be raised by issue of shares
(B) Minimum subscription	(II) Application received is more than shares issued
(C) Under Subscription	(III) Allotment of shares without issue of prospectus
(D) Private Placement	(IV) Application received is less than shares issued

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A)-(II), (B)-(I), (C)-(IV), (D)-(III)

Each term describes the response to an issue of shares:

(A) Over Subscription — this matches (II) Application received is more than shares issued. More shares are applied for than are offered.

(B) Minimum subscription — this matches (I) Minimum amount that must be raised by issue of shares. Without it the company cannot allot shares.

(C) Under Subscription — this matches (IV) Application received is less than shares issued. Fewer shares are applied for than are offered.

(D) Private Placement — this matches (III) Allotment of shares without issue of prospectus. Shares are offered to a select group through an offer letter, not a public prospectus.

NCERT (2026-27 edition):
Over Subscription – “There are instances when applications for more shares of a company are received than the number offered to the public for subscription. This usually happens in respect of shares issue of well-managed and financially strong companies and is said to be a case of ‘Over Subscription’.”

NCERT (2026-27 edition):
Minimum Subscription

Extract from the NCERT textbook

NCERT (2026-27 edition):
Under Subscription – “Under subscription is a situation where number of shares applied for is less than the number for which applications have been invited for subscription.”

NCERT (2026-27 edition):
Private Placement of Shares – “The Companies Act, 2013 (Section 42)describes Private Placement as an offer of securities or invitation to subscribe securities to a select group of persons through issue of private placement offer letter.”