Divine Dwellings Ltd. is a listed company and it wants to buy-back its equity shares. Under the provisions of SEBI (Buy-Back of Securities) Regulations, 2018, answer (with reasons) whether the company can proceed to buy-

According to regulation 4(ix) of the SEBI (Buy-Back of Securities) Regulations, 2018, a company may buy-back shares or other securities out of its free reserves or the securities premium account or the proceeds of the issue of any shares or other specified securities. Buy back shall not be made out of the proceeds of an earlier issue of the same kind of shares or same kind of specified securities. In the given situation, the company intends to raise funds for buy-back of equity shares by issuing debentures (other securities). Therefore, the company can proceed for buy-back.