Sec. 186 of co. act 2013

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mohit vaidya (Querist)
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22 April 2017 what is investment layer ? what is the meaning of maximum investment possible by 2 investment layer ? Please explain

Jatin Bajaj

Jatin Bajaj (Expert)
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25 April 2017 As per section186 of the companies act 2013, a company cannot make investment in more than two layers of subsidiary company. the aforsaid provisions are only applicable to investment companies and not manufacturing Company.
For example : ABC Ltd is having its subsidiary XYZ Pvt Ltd and XYZ Pvt Ltd has its subsidiary MYN Pvt. Ltd. So it can make investment only upto 2 layers and not beyond 2 layers.

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