Under section 39(2) of the Companies Act, 2013, what is the minimum amount payable on application for each security, if SEBI has not specified a different percentage or amount?
Question and options
Under section 39(2) of the Companies Act, 2013, what is the minimum amount payable on application for each security, if SEBI has not specified a different percentage or amount?
5% of nominal value
10% of nominal value
25% of nominal value
6% of nominal value
Answer and explanation
Section 39(2) provides that the amount payable on application on every security shall not be less than five per cent of its nominal amount, or such other percentage or amount as SEBI specifies by regulations. The other figures are not the statutory floor.
Practice for these exams
-
All India Bar Examination (AIBE)
Subject revision
See pack details on LawMint.net -
UGC NET Law
Subject revision
See pack details on LawMint.net -
IIT Kharagpur LL.M. Entrance
Subject revision
See pack details on LawMint.net -
CLAT PG
Subject revision for a passage-based exam
-
CUET PG Law (LL.M.)
Subject revision
-
AILET PG
Subject revision
-
Bihar Judicial Services
Subject revision
Related exam syllabi
More solved explanations in Prospectus, allotment & private placement
- Prospectus invites offers from the public for:
- Under the Companies Act, 2013, a shelf prospectus means a prospectus under which securities may be issued:
- A prospectus issued in contravention of Section 26 of the Companies Act, 2013 makes the company liable to:
- A company issues a prospectus to the public inviting applications for shares, subject to allotment. In contract terms, how is the prospectus ordinarily classified?
- Under Section 23(1) of the Companies Act, 2013, what are the modes through which a public company may issue securities?