Question:
The minimum amount of capital which must be subscribed by the public before allotment is called:
The minimum amount of capital which must be subscribed by the public before allotment is called:
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No allotment of shares can be made unless the minimum subscription (at least 90% of issue) is received.
Updated On: Mar 26, 2026
- allotment money
- minimum subscription
- subscribed capital
- None of these
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The Correct Option is B
Solution and Explanation
Step 1: Understand the term.
Minimum Subscription is the least amount that must be raised by a company through issue of shares before it can legally allot those shares.
Step 2: Legal requirement.
As per SEBI guidelines, at least 90% of the issued amount must be subscribed.
Step 3: Difference from other options.
Allotment money is just one installment.
Subscribed capital refers to the total applied amount.
Only option (B) correctly defines the condition for allotment.
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