Corporate and Other LawsMCQQuestion 12521 of 300
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Under Section 39(1) of the Companies Act, 2013, no allotment of securities offered to public shall be made unless the minimum amount stated in the prospectus has been subscribed. Under SEBI ICDR Regulations, what is the minimum percentage of net offer to the public that must be subscribed?

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — 90% of the offer size

All Options:

  • A90% of the offer size ✓
  • B80% of the offer size
  • C75% of the offer size
  • D100% of the offer size

Detailed Solution & Explanation

Correct Answer: Option **A** (90% of the offer size) **Statutory Provision (Section 39 - Allotment of Securities by Company):** Under Section 39 read with SEBI regulations, minimum subscription is fixed at 90% of the total offer. If 90% is not received, the entire application money must be refunded within 15 days of closure of issue. Therefore, Option A is the correct legal position under the ICAI curriculum.

More Questions from Corporate and Other Laws

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Under Rule 3(3) of the Companies (Acceptance of Deposits) Rules, 2014, what is the maximum aggregate limit of deposits that an eligible public company can accept from its members and the public?

Which of the following is a requirement for a company to buy back its securities under the Companies Act, 2013?

What is the tax treatment of buyback of shares by an unlisted company?

Explain the concept of differential rights and its significance in the context of buyback of securities.

What are the legal provisions governing the buyback of securities by a company in India?

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