033 - - Securities) (Amendment) Regulations, 2013 to amend the Securities and Exchange Board of India (Buy back of Securities) Regulations, 1998. The important provisions of the new regulations are: () No offer of buy-back for fifteen per cent or more of the paid up capital and free reserves of the company shall be made from the open market. (i)A company shall not make any offer of buy-back within a period of one year reckoned from the date of closure of the preceding offer of buy-back, if any. (ii) The company shall ensure that at least fifty per cent of the amount earmarked for buy-back is utilized for buying-back shares or other specified securities. Illustration 4 Perrotte Ltd. (a non-listed company) has the following Capital Structure as on 31.03.2011: Particulars in crores) (1) Equity Share Capital (Shares of ? 10 each fully paid) 330 (2) Reserves and Surplus General Reserve 240 Securities Premium Account 90 Profit & Loss Account 90 Infrastructure Development Reserve 600 Loan Funds 1,800 The Shareholders of Perrotte Ltd., on the recommendation of their Board of Directors, have approved on 12.09.2011 a proposal to buy back the maximum permissible number of Equity shares considering the large surplus funds available at the disposal of the company. The prevailing market value of the company's shares is 725 per share and in order to induce the existing shareholders to offer their shares for buy back, it was decided to offer a price of 20% over market. You are also informed that the Infrastructure Development Reserve is created to satisfy Income-tax Act requirements. You are required to compute the maximum number of shares that can be bought back in the light of the above information and also under a situation where the loan funds of the company were either 1,200 crores or 1,500 crores. Assuming that the entire buy back is completed by 09.12.2011, show the accounting entries in the company's books in each situation. 180