According to the provisions of the Companies Act, 2013 and SEBI (Issue of Capital and Disclosure Requirements) Regulations, when a company fails to receive the minimum subscription required for a public issue, it must refund all application money to the subscribers.
The law specifies a time limit for such refunds. If the company fails to refund the subscription amount within 8 days from the closure of the subscription list due to non-fulfilment of minimum subscription criteria, it becomes liable to pay interest on the delayed amount.
The applicable interest rate for such delay is 15% per annum.
This provision ensures that companies act promptly in refunding money to investors when the issue does not materialize, protecting the interests of subscribers. The interest compensates applicants for the delayed return of their funds and acts as a deterrent against companies holding onto subscription money unnecessarily.
The correct answer is Option 4: 15%