Advertisements
Advertisements
Question
As per SEBI Guidelines, Application money should not be less than ______ of the issue price of each share.
Options
10%
15%
25%
50%
MCQ
Fill in the Blanks
Advertisements
Solution
As per SEBI Guidelines, Application money should not be less than 25% of the issue price of each share.
Explanation:
According to SEBI Guidelines, whenever a company issues shares to the public, the investors must pay an application money of at least 25% of the issue price of each share. This rule ensures that applicants are genuinely interested and discourages speculative or casual applications. The collected money is first deposited in a scheduled bank.
shaalaa.com
Is there an error in this question or solution?
Chapter 6: Company Accounts - Issue of Shares - OBJECTIVE TYPE QUESTIONS [Page 6.201]
