Investment in shares

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Lavina Salian (Querist)
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10 November 2011 Dear All,

Can a Private Company invest in the shares of a public company.Section 372 talks about purchase of shares of other Companies .This section is not applicable to private Company.So if a private Company invest in the shares of public Company then what are the relevant sections and procedures to be followed both by the Public Company as well as Private Company.

RG - A Helping Hand

RG - A Helping Hand (Expert)
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11 November 2011 Inter corporate loans are governed by section 372A which is not applicable to a private company. Hence your private company can invest in the shares of a public company by passing a board resolution to that effect.

RG

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Lavina Salian

Lavina Salian (Querist)
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11 November 2011 Is there any limit for investing in shares of the public Company??

RG - A Helping Hand

RG - A Helping Hand (Expert)
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11 November 2011 Yes

The limits in public company are governed by section 372A. Pls check

RG

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