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Is it legal for companies to buy back shares?

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Yes, it is legal in India for companies to buy back shares post implementation of Buyback of Securities Regulations by SEBI in 1998.

The companies are required to abide by the norms laid down by the SEBI Buyback of Securities Regulations and Companies Act to be eligible or carry out a buyback of shares.

A company could buy back shares worth 25% of the paid-up equity capital and the free reserves of the company.


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