The maximum rate of underwriting commission permitted on the issue price of shares of a public company is:

1. Section 40(6) read with Rule 13 of Prospectus Rules caps the commission at 5% of the issue price of shares. 2. For debentures the cap is 2.5%. 3. Hence (C). _Source: ICAI BoS CA Inter Paper 2 — Prospectus and Allotment_