16 responses to “PURCHASE OF OWN SHARES AND BUYBACK (Companies Act, 2013)

  1. Quote
    No company shall directly or indirectly purchase its own shares or other specified securities—

    (a) Through any subsidiary company including its own subsidiary companies;

    (b) through any investment company or group of investment companies; or
    Unquote

    Supposing A and B are two companies with the same promoter and A is listed and B is not listed. Both companies have same logo and are in related business. Can Company B buy listed shares of company A from an individual through Demat transfer instead of the market route? If no then And can company B buy shares of company A via market route?

    • It appear form the query, Company A is not subsidiary of Company B and vice verse is also true.
      Both company may purchase share of each other.

      • But what makes a company a subsidiary, will same trademark, same promoter make them subsidiary and should not a promoter have fiduciary duty not to act in his own interest by buying shares of a public company of which he is promoter through a private company of which he is a promter?

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