NISM-Series IX: Merchant Banking Certification Exam Notes

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  • Buyback Methods: Tender offer, book building, or stock exchange (until March 31, 2025).
  • Buyback Limit: 25% or less of paid-up capital and free reserves.
  • Debt-Equity Ratio: Must be ≤ 2:1 post-buyback.
  • Buyback Funding: From free reserves, securities premium, or new issue proceeds.
  • Prohibited Buyback Sources: Subsidiary companies or defaulted loans.

NISM Merchant Banking

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