Query about investment made by kmp

Charusheela Taldeokar (Management Trainee in CS firm_ CS Final)   (396 Points)

23 June 2014  

Dear professionals,

 

Please give me the suggestions on following situation:

 

A person, who is the Director in one company wants to make an investment by way of purchasing the shares of another company in which he is a Managing Director. And he wants to purchase a share in the name of his own and not on behalf of company in which he is a Director.

So, advise me whether it is necessary to take approval of the first mentioned company i.e. the company in which he is a Director ?

And which compliances he has to comply?