Question

Minimum subscription for allotment of shares as per Securities and Exchange Board of India (SEBI) guidelines cannot be less than 90% of which of the following capital?

Options

• Reserve Capital

• Nominal Capital

• Subscribed Capital

• Issued Capital

Answer 1

Issued Capital

Explanation:

As per the prescribed minimum subscription requirement, a company must receive at least 90% of the Issued Capital before shares can be allotted. Hence, the correct answer is Issued Capital.