Minimum subscription rules require prompt refund and interest where prescribed subscription thresholds are not achieved within set timelines.

Regulation 99 requires that if an issuing company fails to obtain the minimum subscription of ninety per cent of the offer (or if subscription falls below that level after closure due to returned cheques or withdrawals) it must forthwith refund the entire subscription amount; failure to refund within fifteen days in non underwritten issues attracts interest at fifteen per cent per annum, and underwritten issues that do not reach the minimum including devolvement of underwriters within sixty days must refund with interest for delay beyond sixty days.

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