Business Studies · Company Law and SEBI Regulations
In the context of the Minimum Subscription clause for a company issuing public shares in India, which of the following statements is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The amount of Minimum Subscription can be applied towards the payment of preliminary expenses but not for the payment of underwriting commission.
- 2If the Minimum Subscription is not received, the company must refund the application money within 30 days of the closure of the issue, failing which the directors are personally liable.
- 3The amount fixed as Minimum Subscription must be at least 90% of the entire issue size, as per SEBI regulations, and must be stated in the prospectus.✓
- 4The Minimum Subscription must be received within 120 days from the date of the first issue of the prospectus.
Correct answer
The amount fixed as Minimum Subscription must be at least 90% of the entire issue size, as per SEBI regulations, and must be stated in the prospectus.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Business Studies?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Company Law and SEBI Regulations MCQs →Want more practice questions on Company Law and SEBI Regulations?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Business Studies · Company Law and SEBI Regulations