Section 186 - loan and investment by the company of the companies act

vaishali shukla (19 Points)

07 March 2022  
can anyone please explain me subsection 1 of 186 which says that the company shall not make investment through more than two layers of investment companies.
- does that mean that a company should not invest in a company which has two layers of investments??
or
-does that mean that a company should not invest in more than two companies??