Multiple Choice Questions on If the company is unable to get the minimum subscription the shares cannot be issued and the amount ........... for Common University Entrance Test (CUET) Preparation

If the company is unable to get the minimum subscription the shares cannot be issued and the amount ...........

Accountancy (CUET) Accounting for Shares

If the company is unable to get the minimum subscription, the shares cannot be issued, and the amount must be refunded within 8 days from the date of closure. If not, the company shall be liable to pay ____ % interest per annum.

This questions was previously asked in

CUET ACCOUNTANCY Previous Year Paper (2022)

View All cuet Previous Year Papers

10%

15%

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Explanation:

Minimum Subscription Rule:
- As per SEBI (Securities and Exchange Board of India) guidelines, a company must receive a minimum subscription of 90% of the issued capital within 60 days of the issue opening.
- If this requirement is not met, the company must refund the application money within 8 days of the issue closure.
Penalty for Delay in Refund:
- If the company fails to refund the application money within the prescribed period, it is liable to pay interest on the delayed refund.
- According to Companies Act, 2013 (Section 39) and SEBI regulations, the interest rate applicable is 6% per annum.
Conclusion:
- Since the company failed to get the minimum subscription and delayed the refund, it will have to pay interest at 6% per annum.
- Hence, Option C (6%) is the correct answer.