CA Inter P2 · Chapter 3 · Question 6 of 10
Under section 39(2), the amount payable on application on every security offered in a public issue shall not be less than:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Five per cent of the nominal amount of the security, or such other percentage or amount as SEBI may specify
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 may specify by regulations. SEBI regulations for listed issues prescribe higher application money.
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