Buy back of securities or shares

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Rajesh Singhania

Proprietor

33 Points Posted on 20 September 2014

Someone pls explain how to perform Tests of Buy back of shares as per a) Shares Outstanding Test , b) Resources test..

Because Module says ---->> Provision for the buy back is equal or less than twenty five percent of the total paid-up capital and free reserves of the company. (Silent on Shares Outstanding Test)

RTP says ------>> Provided that no offer of buy-back for fifteen per cent or more of the paid up
capital and free reserves of the company shall be made from the open market. (Again, Silent on Shares Outstanding Test)

So what percentage shoud I take for only Share Outstanding Test.... i.e., what percentage of only Equity Share Capital is allowed to be bought back??

Thanks.

Replies (3)

Rajesh Singhania

Proprietor

33 Points Posted on 23 September 2014

Someone pls help.... what should be only Equity Share capital buy back percentage?

vineet kumar

Student CA IPC / IPCC

80 Points Posted on 06 October 2014

Dear,

buy back of equity shares should not be more then 25% of paidup capital during the year,as per sec.77 of company act 1956

and as per Section 68, 69 and 70 of the Companies Act, 2013

Regard

vineet kumar

7770010353

Rajesh Singhania

Proprietor

33 Points Posted on 06 October 2014

Originally posted by : vineet kumar
	Dear, buy back of equity shares should not be more then 25% of paidup capital during the year Regard vineet kumar 7770010353

Yes.. That's written in Module ... but is it not according to old provision ... I need latest for Nov 2014... how can I verify the same ... any authentic source?