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Nisha Sharma posted an Question
April 01, 2021 • 16:59 pm
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30 points
30 points
- UGC NET
- Commerce
Buy-back of shares when a company purchases its own shares, it is called 'buy-back of shares'. section 77a of the com provides that the company can buy their ow
Buy-back of Shares When a company purchases its own shares, it is called 'Buy-back of Shares'. Section 77A of the Com provides that the company can buy their own shares from either of the following sources: (a) Existing equity shareholders on a proportionate basis (b) Open Market (c) Odd-lot shareholders (d) Employees of the company Contact Us: Website: www.eduncle.com Email : support@eduncle.com | Call Us: 7665435300
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Sapare bhavani bai
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yes Undersection 77a(5) The buy-back may be- (a) from the existing security holders on a proportionate basis; or (b) from the open market; or (c) from odd lots, that is to say, where the lot of securities of a public company, whose shares are listed on a recognised stock exchange, is smaller than such marketable lot, as may be specified by the stock exchange; or (d) by purchasing the securities issued to employees of the company pursuant to a scheme of stock option or sweat equity.
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Nisha sharma
explain me the points mentioned
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Rucha rajesh shingvekar
Buy-Back is a corporate action in which a company buys back its shares from the existing shareholders usually at a price higher than market price. When it buys back, the number of shares outstanding in the market reduces. ... Companies buy back shares on the open market over an extended period of time. Sources from where the shares will be purchased The securities can be bought back from (a) existing security-holders on a proportionate basis; Buyback of shares may be made by a tender offer through a letter of offer from the holders of shares of the company or (b) the open market through (i). book building process; (ii) stock exchanges or (c) odd lots, that is to say, where the lot of securities of a public company, whose shares are listed on a recognized stock exchange, is smaller than such marketable lot, as may be specified by the stock exchange; or (d) purchasing the securities issued to employees of the company pursuant to a scheme of stock option or sweat equity.