The correct answer is: C. 25% of fully paid equity share capital.
The Companies Act, 2013 allows a company to buy back its own shares subject to certain conditions. One of the conditions is that the buy back shall not exceed 25% of the fully paid-up equity share capital of the company.
The buy back of shares can be made through open market purchase, tender offer or through a combination of both. The company has to disclose the details of the buy back in a notice to the stock exchange and also to the shareholders.
The buy back of shares can be a good way for a company to return capital to its shareholders. It can also be used to increase the earnings per share of the company. However, the buy back of shares should be done only after careful consideration
href="https://www.youtube.com/channel/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1" target="_blank" class="youtube-subscribe-button"> Subscribe on YouTube