Question

As per SEBI guidelines, the minimum amount payable on share application should be ________% of nominal value of share. (Fill in the blank by choosing correct option)
(a) 10
(b) 20
(c) 25
(d) 5

Answer 1

20 hope this answer will help you

Answer 2

Answer: 25%

Explanation:

As per SEBI guidelines, the minimum amount payable on share application should be 25% of nominal value of share.

The amount received by a company from its applicants who intends to buy its shares refers to Share application money. It is the money received  during the initial public offering of shares.

The money received through application money is debited to Bank while the Share Applications Account is credited. In case equity shares are issued, the Equity Share Application Account gets credited while in case of issue of preference shares the Preference Share Applications Account is credited.

Hope this helps.