Corporate and Other LawsMCQQuestion 12522 of 300
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Under Section 40(3) of the Companies Act, 2013, all monies received on application from the public for subscription to the securities shall be kept in a separate bank account in:

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

✅ Option A — A Scheduled Bank

All Options:

  • AA Scheduled Bank ✓
  • BThe Reserve Bank of India
  • CA Regional Rural Bank only
  • DAny Cooperative Credit Society

Detailed Solution & Explanation

Correct Answer: Option **A** (A Scheduled Bank) **Statutory Provision (Section 40 - Securities to be Dealt with in Stock Exchanges):** Section 40(3) mandates that all monies received on application from the public for subscription to the securities shall be kept in a separate bank account in a scheduled bank. Therefore, Option A is the correct legal position under the ICAI curriculum.

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