Section 69. Transfer of certain sums to capital redemption reserve account

69. Transfer of certain sums to capital redemption reserve account. —(1) Where a company purchases its own shares out of free reserves or securities premium account, a sum equal to the nominal 1. The words "with imprisonment for a term which may extend to three years or" omitted by Act 29 of 2020, s. 14 (w.e.f. 21-122020). 2. Subs. by s. 14, ibid., for "three lakh rupees, or with both" (w.e.f. 21-12-2020). value of the shares so purchased shall be transferred to the capital redemption reserve account and details of such transfer shall be disclosed in the balance sheet. (2) The capital redemption reserve account may be applied by the company, in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares.