Companies act 2013
Tejas Jasoriya (CPT clear) (284 Points)
20 October 2015
what is the difference between Purchase by a company its own shares and buy back of securities??
5 Replies
Tejas Jasoriya
(CPT clear)
(284 Points)
Replied 20 October 2015
No both are not same;First one is not allowed to co. while second in allowed
Swati Sethi
(Paralegal)
(305 Points)
Replied 20 October 2015
When Company Purchases it own shares, this is called "Buy-Back" of shares and governed by Section 67 of the Companies Act, 2013.
abid ali
(Student)
(34 Points)
Replied 20 October 2015
There is different between purchase of own share and buy back of share. Both are same.
RAHULSMITTAL
(Partner, V Mittal & Co)
(252 Points)
Replied 20 October 2015
Purchase of own share if meant for investement like from open market is prohibited.
Listed companies are not allowed to buy its own share.
Buy back of share is done to reduce share capital from the market. You can show these shares as investment, these shares shouls be reduced from share capital.
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