Companies Act, 1956
Sec 77B - Prohibition for buy-back in certain circumstances
(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; or
(b) through any investment company or group of investment companies; or
(c) if a default, by the company, in repayment of deposit or interest payable 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 bank is subsisting.
(2) No company shall directly or indirectly purchase its own shares or other specified securities in case such company has not complied with provisions of sections 159,207 and 211