Share capital and debentures

Companies Act-Phase (I & II)

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The underwriting commission on shares must not exceed…….

2.0 % of the issued price of shares

2.5 % of the issued price of shares

5.0 % of the issued price of shares

5.5 % of the issued price of shares

Explanation:

As per Rule 13 of Companies (Prospectus and allotment of securities) Rules, 2014)

The company undertakes to pay an underwriting commission for the services rendered by the underwriters. According to Companies Act, underwriting commission should not exceed 5 per cent of the nominal value of a share and 2½ per cent in the case of debentures.

By: Srishti Gupta

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