A private non listed company of my relative , had sold its shares of rs 300000 last year to increase its capital .
now it wants to purchase it back from the same party. please tell me and advise on the best and safest way to do that .... please suggest the right way which companies practice in inida...
regards
shobhit
Sarabjeet Kaur
(CS)
(196 Points)
Replied 26 August 2009
The Directors of the Company can purchase the shares from that third party. As in your case, it is a private unlisted company. The provisions of SEBI(SAST) Act, would not be attracted. In my view, it is the safest way. The Directors would acquire their hold on the Company. Otherwise Company ccan go for Buy Back of Shares.
Others views please, if any
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