Extinguish and destroy bought-back securities (7 days)
The duty to extinguish and physically destroy the securities bought back within seven days of the last date of completion of the buy-back.
Extinguishment and destruction
Counted from the last date of completion of the buy-back
- MCA
- MCA event filings
- Not specified
- 2026-09-01
The securities have to be extinguished and physically destroyed within 7 days of the last date of completion of the buy-back. It is not a filing, and it is the tightest deadline in the buy-back sequence: the SH-11 return is not due for another 23 days after this one lapses.
Deadlines counted from an event
Within 7 days of the last date of completion of the buy-back, extinguish and physically destroy the shares or other securities bought back, under section 68(7).
The rule
Within 7 days of the last date of completion of the buy-back, extinguish and physically destroy the shares or other securities bought back, under section 68(7).
Who must comply
- Every company that has bought back its own shares or other specified securities under section 68
Statutory basis
Before you file
- Complete the buy-back and fix the last date of completion. This date starts the 7-day window.
- Get the Board's authorisation for the extinguishment and destruction.
- Open the register of securities bought back in Form SH-10 and keep it at the registered office.
How to file
- Extinguish the securities bought back.
- Physically destroy the certificates for those securities.
- Complete both steps within 7 days of the last date of completion of the buy-back.
- Record the date of cancellation and the date of destruction in the register in Form SH-10.
- Have the entries authenticated by the company secretary or another person the Board authorises.
- Do not issue the same kind of securities again for six months, except by way of a bonus issue or in discharge of a subsisting obligation.
- File Form SH-11 within 30 days of completion.
An internal act, not an MCA filing
If you miss it
Section 68(11) sets a fine of not less than ₹1 lakh and up to ₹3 lakh on the company for any default under section 68, and the same range on every officer in default. The imprisonment limb that used to reach the officer was omitted by the Companies (Amendment) Act, 2020 with effect from 21 December 2020.
- Section 68(8) bars a further issue of the same kind of securities for six months after the buy-back, other than a bonus issue or the discharge of a subsisting obligation such as conversion of warrants, stock options, sweat equity, preference shares or debentures
- Section 68(9) and rule 17(12) require the register of bought-back securities to record the date of cancellation and the date of destruction, so a missed destruction leaves a gap in the register the company has to keep
Common questions
Is this the same deadline as SH-11?
No, and it comes first. Destruction is due within seven days of the last date of completion of the buy-back; the SH-11 return is due within thirty days of completion.
Is anything filed for the destruction itself?
Nothing separate. The dates of cancellation and of destruction are recorded in the register of bought-back securities under section 68(9) and rule 17(12), and the register stays at the registered office.