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CS Executive · Capital Market and Securities Laws · Buy-Back of Securities

Under Section 68(3), which item must be included in the explanatory statement accompanying the notice of the meeting proposing a special resolution for buy-back?

The explanatory statement must state the time-limit for completion of the buy-back. Section 68(3) also requires full disclosure of material facts, the necessity for the buy-back, the class of securities intended to be purchased and the amount to be invested.

  1. AThe names of all shareholders who will tender shares
  2. BThe time-limit for completion of the buy-backCorrect
  3. CThe expected market price of the shares after buy-back
  4. DThe declaration of solvency, to be filed after the meeting

Explanation

Section 68(3) requires disclosure of all material facts, the necessity for the buy-back, the class of securities, the amount to be invested and the time-limit for completion. The post-buy-back market price and the names of tendering holders are not listed. The declaration of solvency is filed with the Registrar and SEBI before the buy-back under Section 68(6), not part of the explanatory statement.

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