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Penalty for default in complying with buy-back provisions: company can be fined a minimum of:
A₹10,000
B₹50,000
C₹1 lakh
D₹5 lakhs
Answer & Solution
Correct answer: C. ₹1 lakh
1. Step 1: Sec 68(11) prescribes minimum fine of ₹1 lakh up to ₹3 lakh on the company.
2. Step 2: Officer in default: imprisonment up to 3 years and/or fine ₹1-3 lakhs.
3. Step 3: Hence (C).
_Source: ICAI BoS CA Inter Paper 1, Ch 12 "Buy-Back of Securities"_