Case: Lavanya Ltd completed a buyback of its equity shares last month. Under section 68, the company cannot make a further issue of the same kind of shares (other than by way of bonus issue or in discharge of subsisting obligations such as conversion of warrants or preference shares/debentures) within a period of:

Correct answer: D) Six months from the completion of the buyback

Explanation

Section 68(8) prohibits a company that has completed a buyback from making a further issue of the same kind of shares, including allotment of new shares, within six months, except by way of bonus issue or in discharge of subsisting obligations such as conversion of warrants, stock options, sweat equity or conversion of preference shares or debentures into equity shares.