The Companies having subsidiaries which are NBFCs & Housing Finance Companies are required to calculate the debt to capital and free reserves ratio, after excluding the financial statement of those subsidiaries subject to there debt to capital and free reserves ratio being not more than 6:1 [rectified against 56:1 as mentioned in Buy-Back Regulation (Second Amendment) Regulations, 2019]. Further the said buy-back regulations has also clarified that the reference of paid-up capital and free reserve wherever appearing in Buy-Back Regulations, 2018 shall be reckoned on the basis of standalone & consolidated financial statements of the Company, e.g. the maximum limit of buy-back shall be 25% of the aggregate of paid up capital & free reserve of the Company.
https://www.sebi.gov.in/web/?file=https://www.sebi.gov.in/sebi_data/attachdocs/sep-2019/1569821073970.pdf#page=1&zoom=auto,-16,792
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