What is called Minimum Subscription? - Vidyadip

Question

What is called Minimum Subscription?

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Answer

"The minimum amount that a company buys from the public is called the minimum payment so that the company can start a business as per its plan."
The Companies Act does not specify what the minimum payment amount should be.
But according to SEBI guidelines, at least 90% of the issued shares should be recovered if the company has not entered into a public offering undertaking.
If the minimum payment stated in the advertisement is not received, the shares cannot be allotted by the company.

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