MCA vide Notification No. GSR _______ (E),  on Thursday, 10th March, 2016,has issued Companies (Share Capital and Debentures) Amendment Rules, 2016 to amend clause n(iii) of Rule 17(1) of the Companies (Share Capital and Debentures) Rules, 2014.

The Clause (n) (iii) of Rule 17(1) of the Companies (Share Capital and Debentures) Rules, 2014 provides for a report addressed to the Board of directors by the company’s auditors stating that the audited accounts on the basis of which calculation with reference to buy back is done is not more than six months old from the date of offer document.

Now, following proviso has been inserted in the Clause n (iii) of the Rule 17(1) of Companies (Share Capital and Debentures) Rules, 2014.

“provided that where the audited accounts are more than six months old, the calculations with reference to buy back shall be on the basis of un-audited accounts not older than six months from the date of offer document which are subjected to limited review by the auditors of the company.”

The said Notification can be accessed at the following link: Notification No. GSR ____ (E) _Companies Share Capital & Debentures Amendment Rules 2016