Prohibition on buy-back restricts companies repurchasing own shares where defaults exist or through subsidiaries and investment companies. A company is prohibited from directly or indirectly purchasing its own shares or other specified securities when such purchase is effected through any subsidiary or through any investment company or group of investment companies. The prohibition also applies where the company has defaulted on specified payment obligations including deposits, interest, redemption of debentures or preference shares, dividend payments, or repayment of term loans or interest to financial institutions; the prohibition is removed only after the default is remedied and a subsequent lapse period has passed. Noncompliance with certain statutory filing, dividend distribution and reporting obligations likewise bars buy-back.