Multiple choice

Underwriting is mandatory for the net issue to the public and minimum requirement of ______ subscription.

  1. 50%

  2. 90%

  3. 40%

  4. 60%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

As per SEBI guidelines, a company must receive a minimum of 90% subscription against entire issue before making any allotment of shares, hence underwriting is mandatory to fulfill such requirement.

Keep practicing — related questions