Why buyback 20?

pritesh (delhi) (720 Points)

18 July 2021

although act allowed upto 25% of buyback of shares than why most of the companies buyback their shares upto 20%. Is there any catch?

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 18 July 2021

But 10% maximum is allowed

pritesh (delhi) (720 Points)
Replied 18 July 2021

Sourav go through the provisions please.

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CS Divesh Goyal (Practicing Compnay Secretary) (50535 Points)
Replied 21 July 2021

Its nothing like maximum companies do 20%. WE have seen many companies doing 10% and 25% also.

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 22 July 2021

Yes 10% is also mentioned in provisions

CS Divesh Goyal (Practicing Compnay Secretary) (50535 Points)
Replied 22 July 2021

Exactly, 1-25% any percent can be buy back as per choice of company.

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 23 July 2021

Yes ...

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