Section 3(1)(iv) clarification

Hi Friends,

As per Section 3(1)(iv)(c)
-public company means a private company which is a subsidiary of a company which is not a private company.

Now my query is if a private co. becomes a subsidiary of a public co., can it retain its status of private co. i.e. 2 directors, 2 members, paid up capital of Rs. 1 lacs etc and continue to enjoy privileges of pvt. co.

or

it should convert itself in to a public company and comply with all the provisions of the Act applicable to public co.

Is there any clarification/ circular of MCA on the same permitting the subsidiary pvt. co. to continue to enjoy the privileges of pvt. co. granted under certain sections and to comply with certain sections applicable to public co.

or it should mandatorily convert itself in to a public co.

Pl. provide ur valuable guidance on the issue at the earliest.

Thanks in advance...:)