SECTION 39 ;- Allotment of Security

Corporate & Other Laws

As per companies act - minimum application amount is 5% of issue price of shares or as may be prescribed . But , SEBI has prescribed @ 25% . What to write in exams ?

Varun Mulay

CA Final

★ 39K+

02-Mar-23 11:43

450

Answers (4)

Best Answer

Its important to mention the Companies Act provision (5%) in exam. You can additionally write in brackets the Sebi requirements also just to display your knowledge. Marks will be allotted for Company Law provision mainly.

CA YOGITA HARJANI

Faculty

02-Mar-23 20:35

In my opinion, we can go by 5% of Nominal Value of Shares as Application money, because SEBI mainly comes into play when it is a Public Limited Company.

Rajasekaran Suresh

CA Inter

★ 495

02-Mar-23 11:54

Harshitha Kalidindi

CA Final

★ 51K+

02-Mar-23 12:22

shivaji hari

CA Inter

★ 3K+

02-Mar-23 12:26