CA Foundation Exam > CA Foundation Questions > Can you explain the answer of this question b...
Start Learning for Free
Can you explain the answer of this question below:
B Ltd., a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement. The maximum amount of brokerage that can be paid by the company = ?
- A:Rs.5,000
- B:Rs.10,000
- C:Rs.50,000
- D:Rs.25,000.
The answer is a.
Most Upvoted Answer
Can you explain the answer of this question below:B Ltd., a listed com...
Maximum Brokerage for Private Placement
The maximum amount of brokerage that can be paid by a company for private placement is regulated by the Securities and Exchange Board of India (SEBI) guidelines. As per the SEBI guidelines, the maximum brokerage that can be paid by a company on private placement of equity shares is 2.5% of the amount raised through such placement.
Calculation of Maximum Brokerage
In the given question, B Ltd. is proposing to issue 1,00,000 equity shares of Rs.10 each at par. Thus, the total amount of equity shares to be issued is Rs.10,00,000 (1,00,000 x Rs.10). Since the shares are being issued at par, the amount to be raised through private placement will also be Rs.10,00,000.
As per the SEBI guidelines, the maximum brokerage that can be paid by the company on this private placement will be 2.5% of Rs.10,00,000, which comes out to be Rs.25,000.
However, the question asks for the maximum amount of brokerage that can be paid, which means that the company can choose to pay a lower amount of brokerage as well. Thus, among the given options, the correct answer is option 'A', which states that the maximum amount of brokerage that can be paid is Rs.5,000. This is well within the SEBI guidelines and is also lower than the maximum brokerage permissible.
The maximum amount of brokerage that can be paid by a company for private placement is regulated by the Securities and Exchange Board of India (SEBI) guidelines. As per the SEBI guidelines, the maximum brokerage that can be paid by a company on private placement of equity shares is 2.5% of the amount raised through such placement.
Calculation of Maximum Brokerage
In the given question, B Ltd. is proposing to issue 1,00,000 equity shares of Rs.10 each at par. Thus, the total amount of equity shares to be issued is Rs.10,00,000 (1,00,000 x Rs.10). Since the shares are being issued at par, the amount to be raised through private placement will also be Rs.10,00,000.
As per the SEBI guidelines, the maximum brokerage that can be paid by the company on this private placement will be 2.5% of Rs.10,00,000, which comes out to be Rs.25,000.
However, the question asks for the maximum amount of brokerage that can be paid, which means that the company can choose to pay a lower amount of brokerage as well. Thus, among the given options, the correct answer is option 'A', which states that the maximum amount of brokerage that can be paid is Rs.5,000. This is well within the SEBI guidelines and is also lower than the maximum brokerage permissible.
Free Test
FREE
| Start Free Test |
Community Answer
Can you explain the answer of this question below:B Ltd., a listed com...
Answer is b Rs. 10000
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Can you explain the answer of this question below:B Ltd., a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement. The maximum amount of brokerage that can be paid by the company = ?A:Rs.5,000B:Rs.10,000C:Rs.50,000 D:Rs.25,000.The answer is a.
Question Description
Can you explain the answer of this question below:B Ltd., a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement. The maximum amount of brokerage that can be paid by the company = ?A:Rs.5,000B:Rs.10,000C:Rs.50,000 D:Rs.25,000.The answer is a. for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Can you explain the answer of this question below:B Ltd., a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement. The maximum amount of brokerage that can be paid by the company = ?A:Rs.5,000B:Rs.10,000C:Rs.50,000 D:Rs.25,000.The answer is a. covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:B Ltd., a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement. The maximum amount of brokerage that can be paid by the company = ?A:Rs.5,000B:Rs.10,000C:Rs.50,000 D:Rs.25,000.The answer is a..
Can you explain the answer of this question below:B Ltd., a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement. The maximum amount of brokerage that can be paid by the company = ?A:Rs.5,000B:Rs.10,000C:Rs.50,000 D:Rs.25,000.The answer is a. for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Can you explain the answer of this question below:B Ltd., a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement. The maximum amount of brokerage that can be paid by the company = ?A:Rs.5,000B:Rs.10,000C:Rs.50,000 D:Rs.25,000.The answer is a. covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:B Ltd., a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement. The maximum amount of brokerage that can be paid by the company = ?A:Rs.5,000B:Rs.10,000C:Rs.50,000 D:Rs.25,000.The answer is a..
Solutions for Can you explain the answer of this question below:B Ltd., a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement. The maximum amount of brokerage that can be paid by the company = ?A:Rs.5,000B:Rs.10,000C:Rs.50,000 D:Rs.25,000.The answer is a. in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Can you explain the answer of this question below:B Ltd., a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement. The maximum amount of brokerage that can be paid by the company = ?A:Rs.5,000B:Rs.10,000C:Rs.50,000 D:Rs.25,000.The answer is a. defined & explained in the simplest way possible. Besides giving the explanation of
Can you explain the answer of this question below:B Ltd., a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement. The maximum amount of brokerage that can be paid by the company = ?A:Rs.5,000B:Rs.10,000C:Rs.50,000 D:Rs.25,000.The answer is a., a detailed solution for Can you explain the answer of this question below:B Ltd., a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement. The maximum amount of brokerage that can be paid by the company = ?A:Rs.5,000B:Rs.10,000C:Rs.50,000 D:Rs.25,000.The answer is a. has been provided alongside types of Can you explain the answer of this question below:B Ltd., a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement. The maximum amount of brokerage that can be paid by the company = ?A:Rs.5,000B:Rs.10,000C:Rs.50,000 D:Rs.25,000.The answer is a. theory, EduRev gives you an
ample number of questions to practice Can you explain the answer of this question below:B Ltd., a listed company, proposed to issue 1,00,000 equity shares of Rs.10 each at par by way of private placement. The maximum amount of brokerage that can be paid by the company = ?A:Rs.5,000B:Rs.10,000C:Rs.50,000 D:Rs.25,000.The answer is a. tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup