The following is an extract of Balance Sheet of Alpha Ltd. : Equity Shares Capital — 50,000 Equity Share of ₹ 10 each. 10% Debenture Capital — 20,000 Debenture of ₹ 10 each. On 21st April, 2018, the Board of directors de

As per SEBI (Buy-Back of Securities) Regulations, 2018, the Company shall not directly or indirectly purchase its own shares or other specified securities if a default is made by the company in the repayment of deposits accepted either before or after the commencement of the Companies Act, interest payment thereon, redemption of debentures or preference shares or payment of dividend to any shareholder, or repayment of any term loan or interest payable thereon to any financial institution or banking company. However, the buy-back is not prohibited if the default is remedied and a period of three years has lapsed after such default ceased to subsist. In the given case, Alpha Ltd, defaulted the payment of interest on secured loan to Bank in the year 2016. Although the company has made good the default in year 2017 but the statutory period of three years has not lapsed. Hence, the company cannot proceed to buy-back the shares.