Section 62 : Prohibition on providing loan or financial assistance by company to purchase its own shares
No company shall provide any loan or financial assistance of any kind to any person for purchasing its own shares or the shares of its holding company or its subsidiary company or getting entitlement too such shares in any manner.

 

Provided, however, that nothing contained in this Section shall prevent a company from providing loans to any employees of the company to purchase the fully paid up shares of that company or its holding company or its subsidiary company or acquire ownership over such share s in any manner, under a scheme of selling shares to its employees.