According to SEBI (Issue of Capital and Disclosure Requirements) Regulations, the minimum subscription of capital for a public issue cannot be less than 90% of the issued amount.
This means if a company issues shares to the public, it must receive applications for at least 90% of the total shares offered. If subscriptions received are below this threshold, the entire amount collected from applicants must be refunded within the prescribed time period.
For example, if a company issues 1,00,000 shares to the public, it must receive applications for at least 90,000 shares (90% of 1,00,000) for the issue to be considered successful.
This provision protects investors by ensuring that only adequately subscribed issues proceed, thereby maintaining market confidence and preventing companies from operating with insufficient capital.
Correct Option: 2 (90%)