What is the over-subscription of Debentures?
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The over-subscription of debentures refers to, the company has received applications for more number of debentures that it has actually issued. In such a scenario, the enterprise may make allotment by any of the following 3 options mentioned below:
First alternative – Rejecting excess applications
Second alternative – Partial or pro-rata allotment
Third alternative – A combination of the above mentioned 2 alternatives