(i) a banking company, or an insurance company, ora housing finance company in the ordinary course of its business, or a company established with the, sole object of financing industrial enerprises, or of providing infrastructural facilities;
(ii) a company whose principal business is the acquisition of shares, stock, deben
tures or other securities; (iii) a private company unless it is a subsidiary of a public company; (iv) to investments made in shares allotted in pursuance of Section 81(1) (a), i.e.,
rights issues;
(v) to any loan made by a holding company to its wholly owned subsidiary; (vi) to any guarantee given or any security provided by a holding company in
respect of loan made to its wholly owned subsidiary; or
(vii) to acquisition by a holding company, by way of subscription, purchase or
otherwise, the securities of its wholly owned subsidiary.
10. Powers of the Central Government The Central Government has been empowered to prescribe guidelines for the purposes of this Section [Section 372-A(7)].
11. Penalty. In case default is made in complying with the provisions of Sec. 372-A (except sub-section (5) for which penalty has already been stated alongwith the relevant provisions), the company who is in default shall be punishable with imprisonment upto 2 years or with fine which may extend to Rs. 50,000 [sub-section (8)]
No comments:
Post a Comment