A company with registered capital ₹50,00,000 (1,00,000 Equity Shares of ₹50 each) was incorporated. What will be the amount of underwriting commission if Underwriting Commission was payable @ 5% of Nominal (Face) Value of Shares, by issue of 60000 Equity Shares at par?

₹150000

The correct answer is option 3- ₹150000.

Underwriting commission = 50 X 5/100
                                     = ₹2.5
Amount of Underwriting commission = 60000 X 2.5
                                                    = ₹150000