Prohibition for buy-back in certain circumstances
(1)
No company shall directly or indirectly purchase its own shares or other specified securitiessecurities —
(a)
through any subsidiary companysubsidiary company including its own subsidiary companies;
(b)
through any investment company or group of investment companies; or
(c)
if a default , is made by the company , in the repayment of depositdeposit accepted either before or after the commencement of this Act, interest payment thereon, redemption of debenturedebenture or preference shares or payment of dividenddividend to any shareholder, or repayment of any term loan or interest payable thereon to any financial institutionfinancial institution , or banking companybanking company :
(2)
No company shall, directly or indirectly, purchase its own shares or other specified securities in case such company has not complied with the provisions of sections 92sections 92, 123, 127 and section 129section 129.(Effective from 01-04-2014)