Company group structures: layers capped at two for most companies, with specified exemptions, filing requirements, and penalties. Except for specified classes, no company shall have more than two layers of subsidiaries; one layer of wholly owned subsidiaries is excluded. Exemptions include regulated banking, systemically important NBFCs, insurance companies, and Government companies. Existing companies with excess layers must file Form CRL-1 within 150 days, may not add layers beyond existing ones, and after reducing layers may not exceed the greater of the reduced count or the statutory maximum. Contraventions attract fines on the company and defaulting officers.