Private Limited Company and Unlisted Public Limited Company (Buy-back of Securities) Rules, 1999
8. General obligations of the Company
(1) 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 shares including by way of bonus till the date of the closure of the offer under these rules;
(c) the company shall confirm in its offer the opening of separate bank account testifying the availability of funds earmarked for this purpose and pay the consideration only by way of cash or Bank draft/pay order;
(d) the company shall not withdraw the offer once the draft letter of offer has been filed with the Registrar of Companies; and
(e) the company shall utilize any money borrowed from Banks/Financial Institutions for the purpose of buying-back its shares.