What are the legal provisions governing the buyback of securities by a company in India?
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Buyback of Securities & Differential RightsSubjectiveQuestion 5724 of 6
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Detailed Solution & Explanation
The legal provisions governing the buyback of securities by a company in India are primarily contained in the Companies Act, 2013 and the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018. These provisions require that the buyback must be authorized by a special resolution, the company must have a minimum net worth, and the buyback must be made out of free reserves or securities premium account. Additionally, the company must comply with the requirements of the Listing Regulations and the SEBI regulations.
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