Companies Act, 1956
Sec 77AA -
Transfer of certain sums to capital redemption reserve account
Where a company purchases its own shares out of free reserves,
then a sum equal to the nominal value of the share so purchased shall be
transferred to the capital redemption reserve account referred to in clause (d)
of the proviso to sub-section (l) of section 80 and details of such transfer
shall be disclosed in the balance sheet.