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Loan to a Holding Company

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(Querist)
19 April 2011 Can a wholly owned subsidiary give an unsecured/ secured loan to its Holding Company??? To the best of my knowledge, there is no such restriction under the Companies Act, 1956........Experts ur views please?
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Mandar

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Mandar (Expert)
21 April 2011 Yes, there is no restriction in companies act. You should have a proper loan agreement in place.
Please take care of interest rate etc. ( from trasnfer pricing perspective)
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