https://www.taxtmi.com/caselaws?id=103409 RBI circulars prohibiting buy-back arrangements bind banks as regulatory directions, but breach does not automatically invalidate contracts with third parties who were not addressed by the directions. A ready-forward transaction is severable: the ready leg, being an immediate sale and delivery against payment, remains valid, while any illegality is confined to the forward repurchase commitment. Once the ready leg is performed and title has passed, the completed transfer is not undone by illegality in the forward leg, and the securities cannot be treated as attachable property under the Special Court Act if they no longer belong to the notified persons. en-us Wed, 19 Mar 1997 00:00:00 +0530 Mon, 28 Jul 2014 18:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103409 RBI circulars prohibiting buy-back arrangements bind banks as regulatory directions, but breach does not automatically invalidate contracts with third parties who were not addressed by the directions. A ready-forward transaction is severable: the ready leg, being an immediate sale and delivery against payment, remains valid, while any illegality is confined to the forward repurchase commitment. Once the ready leg is performed and title has passed, the completed transfer is not undone by illegality in the forward leg, and the securities cannot be treated as attachable property under the Special Court Act if they no longer belong to the notified persons. Case-Laws Companies Law Wed, 19 Mar 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103409