Section 19

As per my knowledge a subsidiary is allowed to hold shares as the legal representative of a deceased member of the holding co. by virtue of first proviso to sec. 19

Exceptions applicable to subsidiary company to not to hold shares in its holding Company:
[a] where the subsidiary company holds such shares as the legal representative of a deceased member of the holding company; or
[b] where the subsidiary company holds such shares as a trustee; or
[c] where the subsidiary company is a shareholder even before it became a subsidiary company of the holding company:
If subsidiary company receive shares as legal representative from non deceased member it is not allowed.