Section 17(10) in Companies (Share Capital and Debentures) Rules, 2014
(10)The company shall ensure that-(a)the letter of offer shall contain true, factual and material information and shall not contain any misleading information and must state that the directors of the company accept the responsibility for the information contained in such document;(b)the company shall not issue any new shares including by way of bonus shares from the date of passing of special resolution authorising the buy-back till the date of the closure of the offer under these rules, except those arising out of any outstanding convertible instruments;(c)the company shall confirm in its offer the opening of a separate bank account adequately funded for this purpose and to pay the consideration only by way of cash;(d)the company shall not withdraw the offer once it has announced the offer to the shareholders;(e)the company shall not utilise any money borrowed from banks or financial institutions for the purpose of buying back its shares; and(f)the company shall not utilise the proceeds of an earlier issue of the same kind of shares or same kind of other specified securities for the buy-back.
