New Delhi, June 5: The government is yet to take a final view on the new Companies Bill, including the provisions for the buyback of shares, the secretary in the Department of Company Affairs (DCA), TS Krishnamurty, said on Friday.When contacted, Krishnamurty said: "Buyback provisions are part of the Companies Bill of 1997, which is under the consideration of parliament. The new government is yet to take a final view on this."
DCA, which was moved to the finance ministry during the previous United Front government's tenure, has now been moved back to the law ministry. The United Front government had introduced the Companies Bill in the Rajya Sabha last year.
Revenue secretary NK singh had recently told a meeting of industrialists' here that share buyback was now the subject matter of DCA.
Immediately after the presentation of the budget on Monday, the investment community had expressed disappointment over the omission of the buy-back provision, with many attributing the fall in share values tothis.
Currently, corporates are not allowed to buyback their securities under section 77 of the act.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
