alleryStart learning →After a buy-back, a company cannot issue shares of the same kind (other than bonus) for
ASix months
BThree months
CNine months
DTwelve months
Answer & Solution
Correct answer: A. Six months
A cooling period of six months bars fresh issues of the same kind of shares, including rights issues, after the buy-back is complete.
Keep practising Buy-Back of Securities
Browse all Buy-Back of Securities questions for CA Inter, or explore more Accounting topics.
Related questions
Under Section 68, specified securities includeAfter a buy-back, a remaining investor's proportionate ownershipThe details of the transfer to capital redemption reserve are to be disclosed in the40,000 shares of face value Rs 5 are bought back at Rs 9. Equity share capital is debited Which can absorb the premium paid on a buy-back?Shares that a company has bought back areWithin six months after a buy-back, a company may still make aThe register of bought back shares is kept at the company's