As Per Sec-186(1) Without prejudice to the provisions contained in this Act, a company shall unless otherwise prescribed, make investment through not more than two layers of investment companies. Whether it means Company can invest through only two Investment subsidiaries ?? Or it means investment in subsidiary AND Subsidiary of subsidiary ??
One More Question. For Example, Co. A (Holding Co), Co B (Subsidiary of Co. A) & Co C (Subsidiary of Co. B), Co D (Subsidiary of Co. C). Co B, Co. C & Co D are investment companies. Then Co. A can invest through only Co. B & Co. C & can not invest through Co. D. Am I Correct ??
CAclubindia
