Multiple choice

Which of the following is correct in relation to buy back of shares?

  1. Buy back of shares is permitted out of capital profits only.

  2. Buy back of shares can be done through open market as an indirect route.

  3. Buy back of shares through open market is a resort when the number of shares to be purchased are relatively large.

  4. Buy back of shares requires to file declaration about all debts and loans in prescribed form by the company before Reserve Bank of India.

  5. Buy back of shares requires necessarily to maintain a register of the shares so bought back.
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E Correct answer
Explanation

Correct  ref sec 77A , the co is required to maintain  a register of shares so broght back with mention of necessary details about each and every transaction of buy back.

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