BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Regulatory framework
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control
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Detailed explanation-1: -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. The promoters or the company directors should not be wilful defaulters.
Detailed explanation-2: -An issuer making a public issue is required to inter-alia comply with the following provisions: Minimum Promoter’s contribution and lock-in: In a public issue by an unlisted issuer, the promoters shall contribute not less than 20% of the post issue capital which should be locked in for a period of 3 years.
Detailed explanation-3: -As per SEBI, the minimum subscription for public issue of debentures is 75% of the base issue size i.e. ₹100 crores. If the minimum subscription is not received, the entire money received should be refunded within 12 days from the date of closure of the issue.
Detailed explanation-4: -Role of SEBI: This regulatory authority acts as a watchdog for all the capital market participants and its main purpose is to provide such an environment for the financial market enthusiasts that facilitate the efficient and smooth working of the securities market. SEBI also plays an important role in the economy.