BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -As per guidelines of the Securities Exchange Board of India (SEBI), a company making any public issue of shares, debentures, etc. must receive at least 90% of Minimum Subscription before making allotment of shares or debentures to the public. Was this answer helpful?

Detailed explanation-2: -When shares are issued to the general public, the minimum amount that must be subscribed by the public so that the company can allot shares to the applicants is termed ‘minimum subscription’. As per the Companies Act of 1956, the minimum subscription of shares cannot be less than 90 per cent of the issued amount.

Detailed explanation-3: -General SEBI guidelines: The organisation must not get into legal contracts with a depository. The equity shares that are partly paid-up must be fully paid up. 50% of the Board of directors can be independent investors. Directors or promoters must not be guilty of the economic offence.

Detailed explanation-4: -Definition of Minimum Subscription Minimum subscription refers to the minimum number of shares that a company needs to get out of the entire issue by the date of closure. Currently, every company is required to raise 90% of the issues amount.