Strategical investment in Public listed company

Save Share

This query is : Resolved

Ravichandiran (Querist)

25 October 2024 I've registered a Private Limited company one year back. Basically it's registered as an Financial services company. (mutual fund distribution ,insurance agent)
But I want to know

1.whether it's possible to Make Conglomerate Investment in public company by infuse more capital from promotor for long term horizon .
2.its possible even our reserve and surplus is low .

Thanks!

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

28 November 2024 Check your company's AoA to ensure there are no restrictions on making investments in public companies. If necessary, amend the AoA to allow for such investments.
Any significant investment decisions, especially related to creating a conglomerate or making sizable capital allocations, will require approval from the board of directors. Ensure that the decision-making process is well documented. Ensure that your investments align with the applicable laws and financial regulations. For example, if you are investing in publicly listed companies, you will need to follow securities regulations, disclosure requirements, and ensure that you are compliant with any insider trading laws.
Conglomerate Investment in public companies is possible, provided the company has the necessary capital or can raise capital (e.g., from promoters or external sources).
Even with low reserves and surplus, you can still make investments, but you would need to rely on capital infusions from promoters or external sources of funding (such as loans, issuance of fresh equity, or debt financing.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now