When buy-back is made out of proceeds of fresh issue of shares, is CRR transfer required?
AYes — always
BOnly if listed
CNo — CRR transfer not required if buy-back from proceeds of fresh issue of shares
DOnly if subsidiary
Answer & Solution
Correct answer: C. No — CRR transfer not required if buy-back from proceeds of fresh issue of shares
1. Step 1: Sec 69(1) requires CRR transfer ONLY when buy-back is from free reserves or securities premium.
2. Step 2: If from fresh-issue proceeds, no CRR transfer is needed.
3. Step 3: Hence (B).
_Source: ICAI BoS CA Inter Paper 1, Ch 12 "Buy-Back of Securities"_