25 April 2017
As per section186 of the companies act 2013, a company cannot make investment in more than two layers of subsidiary company. the aforsaid provisions are only applicable to investment companies and not manufacturing Company. For example : ABC Ltd is having its subsidiary XYZ Pvt Ltd and XYZ Pvt Ltd has its subsidiary MYN Pvt. Ltd. So it can make investment only upto 2 layers and not beyond 2 layers.
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