Can a Public company become shareholder of a private company

Vishal Mehta (Chartered Accounatnt) (71 Points)

09 March 2011  

Hello

 

Can a Public Limited Company ( Listed ) become a shareholder of a Private Limited Company?.

 

In other words can a public company invest/ buy ( say 30 % ) in shares of a private limited company.

 

If yes, what is the procedure for the same to be followed both by public and private company

 

Please reply.