What is the maximum percentage of shares that can be bought back? is it 25% or 15%
What percentage has to be taken while calculating the three tests to determine maximum number of shares that can be bought back?
Reply as soon as possible
Thanks
Dilip (student) (212 Points)
11 November 2014What is the maximum percentage of shares that can be bought back? is it 25% or 15%
What percentage has to be taken while calculating the three tests to determine maximum number of shares that can be bought back?
Reply as soon as possible
Thanks
Dilip
(student)
(212 Points)
Replied 11 November 2014
Are you sure with this? i was asking this because in rtp they've told that max no of shares that can be bought back is only 15%. So bit confused....Thanks for replying.
shriram
(CA in Practice)
(86 Points)
Replied 12 November 2014
Please note that max permissible buy back is 25%. However this buy back can happen in different ways (for ex., open market, odd lots, etc). The open market buy back is restricted to 15% for listed companies.
All the best
K Shriram
Dilip
(student)
(212 Points)
Replied 12 November 2014
Thanks for your explanation Shriram....really expected such an explanation!! Finally my doubt got clarified.
CAclubindia
