The correct answer is A. 2%.
Underwriting commission is a fee paid to an underwriter for the risk they take in underwriting a security issue. The underwriter agrees to purchase the entire issue of securities from the issuer at a predetermined price, and then resells them to the public at a higher price. The underwriting commission is typically a percentage of the face value of the securities.
In India, the amount of underwriting commission payable on the issue of debentures is limited to 2% of the face value of the debentures. This limit is set by the Securities and Exchange Board of India (SEBI). The SEBI has set this limit in order to protect investors from excessive underwriting fees.
The other options are incorrect because they are not the limits set by the SEBI on underwriting commission.