77B. Prohibition for
buy-back in certain circumstances.—(1) No company
shall directly or indirectly purchase its own shares or other
specified securities—
(a) through any subsidiary company including its own subsidiary
companies; or
(b) through any investment company or group of investment
companies; or
(c) if a default, by the company, in repayment of deposit
or interest payable 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 bank, is subsisting.
(2) No company shall directly or indirectly purchase its
own shares or other specified securities in case such company
has not complied with the provisions of sections 159, 207
and 211.
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