Comment on the following: Circumstances which prohibit buy-back of shares or other specified securities under the Companies Act, 2013.

Under Section 70 of the Companies Act, 2013, no company shall directly or indirectly purchase its own shares or other Securities- through any subsidiary company including its own subsidiary companies; through any investment company or group of investment companies. If a default, is made by the company, in repayment of deposits accepted either before or after the commencement of the Act, interest payment 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. No company shall, directly or indirectly, purchase its own shares or other specified securities in case such company has not complied with the provision of section 92 (Annual Return), 123 (Declaration of Dividend), 127 (Punishment for failure to distribute dividend) and section 129 (Financial Statement).