CURRENT AFFAIRS

2021

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

As per the recent amendment, how much percent of shares can a company sell having a market capitalization of more than Rs 1 lakh crore at the time of listing?

A	5%
B	2%
C	8%
D	10%

Explanation:

Detailed explanation-1: -Minimum 7 shareholders are required to form a public limited company. Minimum of 3 directors is required to form a public limited company. A minimum share capital of Rs.

Detailed explanation-2: -Market capitalization, or market cap, is one measurement of a company’s size. It’s the total value of a company’s outstanding shares of stock, which include publicly traded shares plus restricted shares held by company officers and insiders.

Detailed explanation-3: -Eligibility Criteria: The minimum market capitalization of the Company shall be Rs. 25 crore (market capitalization shall be calculated by multiplying the post-issue paid-up number of equity shares with the issue price).

Detailed explanation-4: -The company should have a paid-up equity capital of not less than Rs. 10 crores. The capitalisation on the equity being issues should not be less than Rs 25 crores.

There is 1 question to complete.