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If buy-back is up to 10% of paid-up equity capital + free reserves, authorisation requires:
ASpecial resolution in general meeting
BTribunal approval
CJust a Board Resolution
DSEBI clearance only
Answer & Solution
Correct answer: C. Just a Board Resolution
1. Step 1: For buy-backs ≤ 10% of paid-up equity + free reserves, Sec 68(2) permits authorisation by a board resolution at a duly convened meeting.
2. Step 2: No special resolution required in this case.
3. Step 3: Hence (B).
_Source: ICAI BoS CA Inter Paper 1, Ch 12 "Buy-Back of Securities"_