Can a Private Company invest in the shares of a public company.Section 372 talks about purchase of shares of other Companies .This section is not applicable to private Company.So if a private Company invest in the shares of public Company then what are the relevant sections and procedures to be followed both by the Public Company as well as Private Company.
11 November 2011
Inter corporate loans are governed by section 372A which is not applicable to a private company. Hence your private company can invest in the shares of a public company by passing a board resolution to that effect.
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