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

Which of the following documents must a listed company file with both the Registrar and SEBI before making a buy-back approved by a special resolution?

A declaration of solvency must be filed. It is signed by at least two directors, one being the managing director if any, and verified by an affidavit that the company can meet its liabilities and will not become insolvent within one year.

  1. AA declaration of solvency signed by at least two directors, one being the managing director, if anyCorrect
  2. BA return of buy-back signed by the auditors
  3. CA copy of the register of buy-back
  4. DA certificate from the stock exchange approving the price

Explanation

Section 68(6) requires a declaration of solvency signed by at least two directors, one of whom is the managing director if any, verified by an affidavit that the Board has inquired into affairs and the company will not be insolvent within one year. It is filed before the buy-back. The return is filed after completion, within thirty days. An unlisted company does not file the declaration with SEBI.

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