CA Inter P1 · Chapter 10 · Question 9 of 10
Under the proviso to section 68(2), no offer of buyback shall be made by a company within what period from the date of closure of its preceding offer of buyback?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) One year
Explanation
The proviso to section 68(2) states that no offer of buyback shall be made within a period of one year reckoned from the date of the closure of the preceding offer of buyback, if any. The six-month restriction is a separate rule relating to fresh issues after a buyback.
More Buyback of Securities MCQs
- Q1Under section 68 of the Companies Act, 2013, a company may buy back its shares with the authorisation of only its board of directors…
- Q2Case: Garima Ltd has paid-up equity share capital of ₹50,00,000 (shares of ₹10 each), securities premium of ₹10,00,000 and general reserve…
- Q3Case: After a proposed buyback, Harsha Ltd will have secured and unsecured debt of ₹3,60,00,000. Assuming no higher ratio has been…
- Q4Case: Ishita Ltd bought back 50,000 equity shares of ₹10 each at ₹40 per share, wholly out of its securities premium and general reserve…
- Q5Case: Jatin Ltd buys back 1,00,000 equity shares of ₹10 each at ₹15 per share. To part-finance the buyback, it issues 10% preference…