Invest or trade

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Anket Jaiswal

Anket Jaiswal (Querist)
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20 October 2013 can a private limited company invest / trade in equity shares?

Ankur Garg

Ankur Garg (Expert)
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20 October 2013 Yes.

But such activity should be supported by the main objects of the company.

thanks

Anket Jaiswal

Anket Jaiswal (Querist)
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21 October 2013 sir,

Please provide me full detail regarding

Ajay Mishra

Ajay Mishra (Expert)
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21 October 2013 Hi

Private company can do both. It can invest in other company or other entities. Read section 292 of the Companies Act, 1956.

Section 179 of the New Companies Act,2013 deal with investment of funds.

The private company can do trading business if their main object will permit otherwise it can not do trading.

Anket Jaiswal

Anket Jaiswal (Querist)
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21 October 2013 Is section 292 applicable on private company

Ajay Mishra

Ajay Mishra (Expert)
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21 October 2013 Yes, it will applicable on both type of companies i.e. Public or private.

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