Prohibition for buy-back in certain circumstances
Section 70 of the Companies Act, 2013 deals with prohibition for buy-back in certain circumstances. No company shall directly or indirectly purchase its own shares or other specified securities-- (a) through any subsidiary company including its own subsidiary companies; The Act came into force on 01 Apr 2014.
(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;
(b) through any investment company or group of investment companies; or
(c) if a default, is made by the company, in the repayment of deposits accepted either before or after the commencement of this Act, interest payment 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 banking company:
Provided that 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.
(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 92, 123, 127 and section 129.
Section 70, The Companies Act, 2013 (Act 18 of 2013).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Made under this section, and citing it
1 instrument states that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 1 instrument names this provision in its title or its text without being made under it.
Questions about Section 70
What does Section 70 of the Companies Act deal with?
Section 70 of the Companies Act is headed "Prohibition for buy-back in certain circumstances". No company shall directly or indirectly purchase its own shares or other specified securities-- (a) through any subsidiary company including its own subsidiary companies;
How do I find court cases under Section 70 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 70, section 70 Companies Act, section 70 of the Companies Act. People searching for it also type companies act 2013 section 70. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 70 of the Companies Act, and has it changed?
Its own text turns on section 92 (Annual return), section 123 (Declaration of dividend), section 127 (Punishment for failure to distribute dividends), section 129 (Financial statement), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it. The rules and notifications made under it are where it actually bites, and there is one: most recently Commencement notification (2018).
When did Section 70 of the Companies Act come into force?
Section 70 of the Companies Act, cited as Companies Act 70, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.