A public company has 1 lakh shares for public subscription. Does the table shown below satisfy the minimum subscription rule as specified by SEBI?

$\begin{matrix} P e r s o n & S h a r e s A p p l i e d 1 & 25 k 2 & 25 k 3 & 25 k \end{matrix}$

Yes

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Solution

The correct option is B
No

No, this doesn't subscribe to the minimum subscription rule. This is because only 75k (25k * 3) shares have been applied. Whereas, the minimum subscription rule wants it to be 90% of 1 lakh i.e., 90, 000.

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Similar questions

A public company has 1 lakh shares for public subscription. Which of the following situation is depicted in the table shown below?

$\begin{matrix} P e r s o n & S h a r e s A p p l i e d 1 & 25 k 2 & 25 k 3 & 25 k \end{matrix}$

As per the guidelines of the Securities Exchange Board of India (SEBI), a company offering public shares must receive atleast ___ of minimum subscription?

Q. According to SEBI guideline a company must receive a minimum of _______% subscription before making any allotment of shares to the public.

Q. Allotment of shares must be made after getting subscription against the entire public issue as per SEBI guidelines.

Name the document which invites the public for share subscription of a company.

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A public company has 1 lakh shares for public subscription. Does the table shown below satisfy the minimum subscription rule as specified by SEBI? PersonShares Applied125k225k325k

The correct option is B No No, this doesn't subscribe to the minimum subscription rule. This is because only 75k (25k * 3) shares have been applied. Whereas, the minimum subscription rule wants it to be 90% of 1 lakh i.e., 90, 000.

A public company has 1 lakh shares for public subscription. Does the table shown below satisfy the minimum subscription rule as specified by SEBI?

$\begin{matrix} P e r s o n & S h a r e s A p p l i e d 1 & 25 k 2 & 25 k 3 & 25 k \end{matrix}$

The correct option is B
No

No, this doesn't subscribe to the minimum subscription rule. This is because only 75k (25k * 3) shares have been applied. Whereas, the minimum subscription rule wants it to be 90% of 1 lakh i.e., 90, 000.