Question

Minimum subscription of capital cannot be less than ................... amount according to SEBI (Disclosure and Investor Protection) Guidelines, 2000.

• A. 60% of the issued
• B. 70% of the issued
• C. 80% of the issued
• D. 90% of the issued

Hint:

SEBI 2000 guidelines set minimum subscription at 90% of the issue.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
Minimum subscription is the least amount that a company must receive from the public before it can allot shares. If this amount is not received, the money must be returned to applicants.

Step 2: Key Fact:
As per the SEBI (Disclosure and Investor Protection) Guidelines, 2000, the minimum subscription is 90% of the issued amount. Under the Companies Act, 2013 the same 90% figure is used.
If the company fails to get it within the stated time, it must refund the money.

Step 3: Check the options.:
60%, 70% and 80% are all below the required level, so (1), (2) and (3) are wrong. 90% of the issued amount is the required minimum, so (4) is correct.

Final Answer:
Minimum subscription is 90% of the issued amount, option (4). \[ \boxed{90\%} \]