Launch offer — 25% off with code LAUNCH-25 See plans →
Microlesson · 5-min read

Buyback — Critical Time Limits and Forms

# Buyback — Time Limits & Statutory Forms

## 1. Important Time Limits

Time LimitWhat it Means
1 yearBuyback must be completed within 1 year from the date of passing the BR or SR authorising buyback
7 daysBought-back securities must be physically destroyed / extinguished within 7 days of completion of buyback
1 yearNO fresh buyback can be made within 1 year from the closure of the preceding buyback
6 monthsNO fresh issue of same kind of shares/specified securities within 6 months of closure of buyback

### Exceptions to the 6-Month Fresh Issue Restriction

The company may still make a fresh issue within 6 months, in the following cases:

  • Issue under ESOPs
  • Sweat Equity Shares (SES)
  • Conversion of warrants / stock options / convertible securities
  • Bonus issue or Rights issue

## 2. Forms Related to Buyback

FormPurpose
SH-8Company to file Letter of Offer with ROC
SH-9Declaration of Solvency (DOS)
SH-10Register of Buyback — to be maintained at registered office by an authorised person
SH-11Return of Buyback — filed within 30 days of completion of buyback with ROC (and SEBI if listed)
SH-15Certificate of Compliance with this Act, signed by 2 directors (1 being MD), attached along with SH-11

## Quick Memory Anchor

```

1 year → Complete buyback / Gap before next buyback

7 days → Destroy securities post buyback

6 months → No fresh issue (with exceptions)

30 days → File Return SH-11

```

Worked example

### Example 1

Example 1 — Completion deadline: ABC Ltd passed a SR for buyback on 1 April 2025. The buyback must be completed by 31 March 2026 (within 1 year of SR).

### Example 2

Example 2 — Destruction: Buyback of ABC Ltd was completed on 15 May 2025. The bought-back shares must be physically extinguished/destroyed by 22 May 2025 (within 7 days).

### Example 3

Example 3 — Fresh issue restriction: Buyback closed on 1 June 2025. Company cannot make a fresh issue of same kind of shares before 1 December 2025 — EXCEPT under ESOPs, SES, conversions, bonus, or rights issue.

### Example 4

Example 4 — Return: Buyback completed on 1 May 2025. Return of buyback in Form SH-11 along with certificate in Form SH-15 must be filed with ROC by 31 May 2025 (within 30 days).

⚠️ Common exam mistakes

  • Confusing the 1-year completion period with the 1-year cooling-off period between two buybacks.
  • Believing fresh issue is completely barred for 6 months — forgetting the ESOP/SES/conversion/bonus/rights exceptions.
  • Mixing up Form numbers — SH-8 (Letter of Offer), SH-9 (DOS), SH-10 (Register), SH-11 (Return), SH-15 (Certificate of Compliance).
  • Forgetting that bought-back securities must be destroyed within 7 days — failure attracts penalty.
  • Missing that SH-15 must accompany SH-11 (return) — they are filed together.
Reference: Section 68(4), 68(7), 68(8), 68(10); Rule 17 of Companies (Share Capital and Debentures) Rules, 2014 — Companies Act, 2013
Now that you've read this — what's next?
Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.
Start 15-min diagnostic