Which of the following statements is not true?

CA Intermediate · Corporate and Other Laws · RTP · January 2026
Which of the following statements is not true?
(A) (A) in case of shares, the rate of underwriting commission to be paid shall not exceed five percent of the issue price of the share.
(B) (B) underwriting commission should not be more than the rate specified by the Article of Association.
(C) (C) in case of debentures, the rate of underwriting commission shall not exceed five percent of the issue price of the debentures.
(D) (D) amount of commission may be paid out of profits of the company.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

(C) in case of debentures, the rate of underwriting commission shall not exceed five percent of the issue price of the debentures.

Topics: The Foreign Exchange Management Act, 1999, Share Capital and Debentures

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