The process of receiving minimum subscription of 90% of the entire issue must be completed within _________ days from date of issue of prospectus

The correct option is 120 days.

Step-by-Step Explanation:

According to Section 39(1) of the Companies Act, 2013, and the guidelines set by the Securities and Exchange Board of India (SEBI), a company cannot allot any securities to the public unless the minimum subscription amount specified in the prospectus has been subscribed, and the sum payable on application for the amount so stated has been paid to and received by the company.

SEBI guidelines prescribe that the minimum subscription for any public issue of shares must be at least 90% of the entire issue size.

If the company fails to receive this minimum subscription of 90% of the issued amount within 120 days from the date of the issue of the prospectus, the entire subscription amount received must be refunded back to the applicants. If there is a delay in refunding this money beyond the prescribed time limit, the company and its directors become liable to pay back the amount with interest.