Loan and investment exemptions for wholly owned subsidiaries and joint ventures require disclosure and regulated entities face inter company limits. Loans, guarantees, securities or acquisitions by a company in favour of its wholly owned subsidiary or a joint venture are exempt from subsection (3) of section 186 but must be disclosed under subsection (4). The term business of financing industrial enterprises includes, for NBFCs registered with the Reserve Bank, lending and provision of guarantees or securities in the ordinary course, and includes specified IFSC finance company activities for Finance Companies registered with the IFSC Authority. SEBI registered companies and notified classes may not take inter corporate loans or deposits beyond the limits under their applicable registration regulations.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Loan and investment exemptions for wholly owned subsidiaries and joint ventures require disclosure and regulated entities face inter company limits.
Loans, guarantees, securities or acquisitions by a company in favour of its wholly owned subsidiary or a joint venture are exempt from subsection (3) of section 186 but must be disclosed under subsection (4). The term business of financing industrial enterprises includes, for NBFCs registered with the Reserve Bank, lending and provision of guarantees or securities in the ordinary course, and includes specified IFSC finance company activities for Finance Companies registered with the IFSC Authority. SEBI registered companies and notified classes may not take inter corporate loans or deposits beyond the limits under their applicable registration regulations.
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