alleryStart learning →Within six months after a buy-back, a company may still make a
ARights issue of same kind
BPublic issue of same kind
CPreferential issue, same kind
DBonus issue of shares
Answer & Solution
Correct answer: D. Bonus issue of shares
Bonus issues are carved out of the six-month cooling period, along with discharge of subsisting obligations.
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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 areThe register of bought back shares is kept at the company'sThe compliance certificate annexed to the buy-back return is in Form