Sun & Moon Ltd. is a Mumbai based construction company. The company is listed in National Stock Exchange. The extract of the balance sheet of Sun & Moon Ltd. is as follows: Equity Share Capital = 10,00,000 of rup

Explanation to Regulation 4(i) of the SEBI (Buy-Back of Securities) Regulations, 2018 provides that in respect of the number of equity shares bought back in any financial year, the maximum limit shall be twenty-five per cent and be construed with respect to the total paid-up equity share capital of the company in that financial year. 1. Maximum equity share capital that can be bought back: Total No. of Equity Shares with Sun & Moon Ltd. = Equity Share Capital / Face Value per share = ₹10,00,000 / ₹25 = 40,000 shares Maximum number of equity shares that can be bought back = 40,000 shares × 25% = 10,000 equity shares Maximum equity share capital that can be bought back = 10,000 equity shares × ₹25 per share = ₹2,50,000 Therefore, the maximum equity share capital that can be bought back is ₹2,50,000 . 2. Maximum number of equity shares that can be bought back: Total No. of Equity Shares with Sun & Moon Ltd. = ₹10,00,000 / ₹25 = 40,000 shares Maximum number of equity shares that can be bought back = 40,000 shares × 25% = 10,000 equity shares Therefore, the maximum number of equity shares that can be bought back is 10,000 equity shares .