Section 297 application

Hello Professional,

We are applying to the Central Government under section 297 for renewal of its approval.Our previous Central Government Approval expires on 31st March 2014. The entire process of renewal will take at least 2 months approximately. If this happens, we might not get approval before 31st March 2014.Does this mean that there cannot be any transaction between the two companies for which we are applying for one month? Or can we continue with the activities? 

Thanks in advance.