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Minimum Subscription

Any public company which invites the public (from the prospectus) to subscribe to its securities, can allot those securities only after that company has subscribed to the minimum amount mentioned in the prospectus. Minimum subscription is the amount that the company has

The minimum amount of subscription is shown in the statement, which is a legal requirement for that company to obtain the date of closure of the corporation. The quantum of minimum amount is determined by SEBI. Company’s promoters, directors etc.

The amount of capital to be issued can be determined. The formula for determining the quantum of minimum subscription amount has been given in the regulations of SEBI. According to this formula, each issuing company has to pay 90% of the net amount of the issued capital.

Minimum subscription amount to be received. While computing the net amount of the issued capital, the securities reserved for certain classes Is.

amount of and

It is noteworthy that if the full issue price of the securities is not sought as application money, then the minimum amount will also be calculated in proportion to the amount sought.

The Companies Act, 2013 stipulates that the minimum subscription amount should be received within 30 days from the date of issue of return or within such period as may be prescribed by SEBI. SEBI has laid down by its regulations that

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