alleryStart learning →Shares of itself held by the transferee under the scheme must be
ASold in the open market
BCancelled or extinguished
CHeld on behalf of promoters
DConverted into debentures
Answer & Solution
Correct answer: B. Cancelled or extinguished
The proviso to Section 232(3)(b) forbids the transferee holding its own shares, which are cancelled or extinguished.
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