Minimum time limit for buy back of preference share

Generally,

Preference shares are redeemed under the section 55 of the Companies Act. Now, section 68 provides a Power of Company to Purchase its Own Securities. 

Definition of Securities is very exhaustive which is given under the Securities Contracts (Regulation) Act, 1956 which we required to follow under the Companies Act, 2013.

Section 68 (1) reproduced for your reference:

(1) Notwithstanding anything contained in this Act, but subject to the provisions of sub-section (2), a company may purchase its own shares or other specified securities (hereinafter referred to as buy-back) out of—

(a) its free reserves;

(b) the securities premium account; or

(c) the proceeds of the issue of any shares or other specified securities:

Provided that no buy-back of any kind of shares or other specified securities shall be made out of the proceeds of an earlier issue of the same kind of shares or same kind of other specified securities.

Now, as per the interpretation of the definition of Securities read with section 68 (1), So, we cannot say that, Company cannot buy-back its preference shares under the Companies Act, 2013 as section has provided scope for the same under the term other specified securities as mentionedabove as there is no bar for the same.

Thank You.