Question:
Minimum subscription for allotment of shares as per Securities and Exchange Board of India (SEBI) guidelines cannot be less than 90% of ________ capital.
Minimum subscription for allotment of shares as per Securities and Exchange Board of India (SEBI) guidelines cannot be less than 90% of ________ capital.
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SEBI’s 90% rule applies to the \textbf{issued capital}, not to nominal or subscribed capital.
Updated On: Jul 7, 2025
- Reserve
- Issued
- Nominal/Registered
- Subscribed
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The Correct Option is B
Solution and Explanation
SEBI requires at least 90% of the issued capital to be subscribed for valid allotment. This protects investors and ensures financial viability of the issue.
Final Answer: Issued
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