The concept of treasury shares in United Kingdom is same as buy-back of shares in India. Examine.

Section 124 read with chapter 6 of U.K Companies Act, 2006 deals with treasury shares. Treasury shares are purchased by the company out of the distributable profits of the company and the company is allowed to hold such shares. The aggregate nominal value of shares held as treasury shares must not exceed 10 percent of nominal value of issued share capital. In India the Section 68 of Companies Act, 2013 allows buy back of its own shares but does not allow a company to hold shares. Bought back shares are to be cancelled within seven days, hence in India, bought back shares cannot be held as treasury stock. In India buy back of shares cannot exceed 25 percent of total paid up capital in any financial year.