As per the section 19 of the Companies Act 2013, no company shall, either by itself or through its nominees, hold any shares in its holding company and no holding company shall allot or transfer its shares to any of its subsidiary companies. Any such allotment or transfer of shares of a company to its subsidiary company shall be void.
Keeping in the view above provision of the Companies Act, is there any chances of question may arise on cross holding under CFS topic ? because law does not permit cross holding.
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