Is minimum subscripttion applicable for debenture issue as well? What is the role or importance of underwriters here?
Menu
Underwriters for debentures?
Replies (1)
Yes, Minimum Subscripttion is applicable for debenture issue as well. As per SEBI guidelines, 2000, no company is allowed to make allotment of Shares or Debentures unless it has received atleast a minimum of 90% of the subscripttion against the entire issue.
The Underwriter gives an assurance/Commitment to take shares or debentures in case of a shortfall in minimum Subscripttion. For more details refer Sec 76 of The Companies Act, 1956.
Recent Threads
- Time allowed to buy another asset
- ITR not processed for the FY 2024-25
- Gift of money to my wife.
- Tax Audit If you show Loss
- GST Tax invoice Value Rs..234000
- Can I claim benefit under 54F if I sell my equity
- Income tax refund 25/26
- Who is responsible for paying GST Liability (If th
- Excess Payment on RCM
- AOC4 auto population of previous year data
Related Threads
CAclubindia
