1) As per the Companies ACt, 1956, a company cannot holds its own shares. This kind of crossholding would mean that the companies are indirectly holding their own shares.
2) Assuming that one company (A) first acquired 100% shares in the other company (B). Then A becomes a holding company and B becomes the subsidiary. As per the Companies Act, a subsidiary company cannot hold voting rights in the holding company. Hence also the above is not possible.
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