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If minimum subscription is not received application money should be refunded with in ______days
- a)20
- b)25
- c)30
- d)15
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
If minimum subscription is not received application money should be re...
Refund of Application Money
When a company issues shares to the public, it invites the public to subscribe to its shares. The investors have to apply for the shares by filling up an application form and remitting the application money. If the minimum subscription is not received, the company has to refund the application money to the investors. The following are the details regarding the refund of application money:
Time Limit for Refund
The Companies Act, 2013, provides that if the minimum subscription is not received within 60 days from the date of the issue of the prospectus, the company has to refund the entire application money to the investors within 15 days from the expiry of 60 days. Therefore, the total time for refunding the application money is 75 days.
However, if the company fails to refund the application money within the prescribed time, it has to pay interest at the rate of 12% per annum from the expiry of the 15th day to the date of the refund.
Minimum Subscription
Minimum subscription means the amount of shares that must be subscribed by the public to enable the company to allot the shares. The Companies Act, 2013, provides that in case of a public issue, the minimum subscription must be 90% of the issued amount.
Conclusion
In conclusion, if the minimum subscription is not received, the company has to refund the application money to the investors within 15 days from the expiry of 60 days. The time limit for refunding the application money is 75 days. If the company fails to refund the application money within the prescribed time, it has to pay interest at the rate of 12% per annum from the expiry of the 15th day to the date of the refund.
When a company issues shares to the public, it invites the public to subscribe to its shares. The investors have to apply for the shares by filling up an application form and remitting the application money. If the minimum subscription is not received, the company has to refund the application money to the investors. The following are the details regarding the refund of application money:
Time Limit for Refund
The Companies Act, 2013, provides that if the minimum subscription is not received within 60 days from the date of the issue of the prospectus, the company has to refund the entire application money to the investors within 15 days from the expiry of 60 days. Therefore, the total time for refunding the application money is 75 days.
However, if the company fails to refund the application money within the prescribed time, it has to pay interest at the rate of 12% per annum from the expiry of the 15th day to the date of the refund.
Minimum Subscription
Minimum subscription means the amount of shares that must be subscribed by the public to enable the company to allot the shares. The Companies Act, 2013, provides that in case of a public issue, the minimum subscription must be 90% of the issued amount.
Conclusion
In conclusion, if the minimum subscription is not received, the company has to refund the application money to the investors within 15 days from the expiry of 60 days. The time limit for refunding the application money is 75 days. If the company fails to refund the application money within the prescribed time, it has to pay interest at the rate of 12% per annum from the expiry of the 15th day to the date of the refund.
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If minimum subscription is not received application money should be re...
Because minimum subscription is 90 percent of total issue of any financial instrument according to the SEBI and when the minimum subscription is not received then refund the application money of receiving application in ten or forteen days and when not refund the application money to investors so company has liable for interest payments on delay on refund of application money with 12percent p.a.
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If minimum subscription is not received application money should be refunded with in ______daysa)20b)25c)30d)15Correct answer is option 'D'. Can you explain this answer?
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