Which reserves can be used to create Capital Redemption Reserve in case of Buy Back of Shares ?
Can we use Securities Premium to create Capital Redemption Reserve in case of Buy Back of Shares ?
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Which reserves can be used to create crr in buyback of share
Replies (1)
Yes
Securities premium can be utilised to create CRR at the time of buy back.
Read section 78 (2) of Cos Act, for uses of securities premium with section 77A (1) which says free reserves to include securities premium for buy back purpose.
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