What will be the interest if application money is not returned within 15 days after the expiry of 60...........

Companies Act-Phase (I & II) Prospectus

What will be the interest if application money is not returned within 15 days after the expiry of 60 days of receipt of share application money and shares are not allotted:

10% per annum

12% per annum

18% per annum

20% per annum

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Explanation:

Section 42(6) of Companies Act, 2013 mandates allotment of shares within 60 days of receipt of share application money and if not allotted, money shall be refunded within 15 days. If not refunded, the company shall pay interest at rate of 12% per annum.