Question

    Which among the following option is a correct

    consideration for Buy Back of shares?
    A The shares to be bought back, must be paid to the extent of 75% of the calls as a % to the face value Correct Answer Incorrect Answer
    B New buy back can’t be made within 15 months of the closing of previous buy back offer Correct Answer Incorrect Answer
    C Buy Back offer shall remain open for not less than 15 days and not more than 30 days Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer
    E A and b are correct Correct Answer Incorrect Answer

    Solution

    All shares for buy back should be fully paid up ·         The buy-back of the shares or other specified securities listed on any recognized stock exchange must be in accordance with the regulations made by SEBI ·         Every buy back must be completed within a period of 12 months (1 year) from the date of passing of special resolution or the Board of Directors resolution, as the case may be ·         No new buy back can be made within one year of closing of previous buy-back offer. ·         A company shall extinguish and physically destroy the securities so bought back within 7 days of completion of buy back. ·         Buy Back offer shall remain open for not less than 15 days and not more than 30 days

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