Before opening of subscription list the issuer should in case of a public issue or a rights issue ot...........

Legal Stream (SEBI) SEBI Act

Before opening of subscription list, the issuer should in case of a public issue or a rights issue (other than a fast track issue of specified securities), place a deposit amounting to one per cent of the amount of securities offered for subscription to the public with the stock exchanges in the manner specified by SEBI and/or the stock exchange(s).

Five per cent

Two per cent

Ten per cent

one per cent

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Explanation:

- Before opening a subscription list for a public or rights issue (excluding fast track issues), issuers must deposit a certain percentage of the securities offered with the stock exchange.

- This requirement is stipulated by the Securities and Exchange Board of India (SEBI) and/or the stock exchanges.

- The purpose of the deposit is to ensure commitments to the public offerings are upheld.

Option 1: Five percent

- Incorrect. The requirement is not five percent; it would be excessively high.

Option 2: Two percent

- Incorrect. SEBI does not require a two percent deposit for this context.

Option 3: Ten percent

- Incorrect. A ten percent deposit requirement would be too burdensome and is not specified by SEBI.

Option 4: One percent

- Correct. SEBI requires a one percent deposit on the securities offered for subscription to the public.