Accountancy Part AAccounting for Shares

In case of issue of shares, the ‘minimum subscription’ of capital can…

In case of issue of shares, the ‘minimum subscription’ of capital cannot be less than ………. of the issued amount according to SEBI (Disclosure and Investor Protection) Guidelines, 2000.

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → 90%

NCERT (2026-27 edition):
Minimum Subscription – “… 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)].”