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Subsidiary investing in holding company's customer

05 May 2014

Hi,

Can a subsidiary in USA of an Indian Company invest in a holding company's customer???
If yes, are there any monetary restrictions as to how much can be invested?
Is section 186 of 2013 Act applicable here?

Please help..

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2 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 05 May 2014

If foreign subsidiary is not an investment company, Sec.186 will not be applicable in this case.

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Still Learning (cs) (234 Points)
Replied 05 May 2014

Im sorry but it is still unclear..What is an investment company?? In my case the subsidiary just wants to invest in the parent's customers. Will that be a problem?