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Equity share can be bought back
Out of profit only
Out of proceeds of fresh issue only
Out of capital profit only
Its free reserves or the securities premium account, or the proceeds of shares
The buy-back of shares can be made only out of:
(a) Free Reserves (means reserves as per the last audited Balance Sheet which are available for distribution and share premium but not the share application amount)
(b) Share Premium Account
(c) Proceeds of any Securities.
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