Witness Initial Debenture For Free

Debenture interest can be explained as the capital which debenture holders are entitled to earn for investing their money in the said company's debenture. However, if a company tends to issue debenture as collateral security, the holders would not receive any interest on their investment.

As per SEBI guidelines, it is mandatory for a company to have at least 90% of the shares subscribed in an IPO till the date of its closure.

Solution. For public issue of debentures of ?100 crores, minimum subscription should be 75%.

Minimum subscription: SEBI (Issue and Listing of Debt Securities) Regulation, 2008 Regulation-12 states the minimum subscription to be collected by a company. As per SEBI, the minimum subscription for public issue of debentures is 75% of the base issue size i.e. ?100 crores.

As per the Companies Act of 1956, the minimum subscription of shares cannot be less than 90 per cent of the issued amount.

A debenture (sometimes called a fixed and floating charge) is little more than a written agreement between a lender and a borrower which is filed at Companies House. A basic and simplified fixed and floating charge can be viewed by clicking on the link.

Allotment of shares or debentures must be made after getting 90% subscription against entire public issue as per SEBI guidelines. Q. Allotment of shares must be made after getting subscription against the entire public issue as per SEBI guidelines.

As per guidelines of the Securities Exchange Board of India (SEBI), a company making any public issue of shares, debentures, etc. must receive at least 90% of Minimum Subscription before making allotment of shares or debentures to the public.