Question

XYZ Ltd. plans to buy back 10% of its paid-up equity capital. It has reserves of ₹20 crore and total debt of ₹80 crore. As per Companies Act and SEBI rules, is this buyback allowed?

A No, as debt exceeds limits
B Yes, under board approval
C Allowed if post-buyback D/E < 2:1
D Permitted only via tender offer
E Only through stock exchange
Practice Next

Hey! Ask a query