alleryStart learning →A buy-back routed through the company's own subsidiary is prohibited by which section?
ASection 77
BSection 70
CSection 69
DSection 66
Answer & Solution
Correct answer: B. Section 70
Section 70 forbids a company from buying back its securities directly or indirectly through any subsidiary.
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