2[ 10 Loans to Director etc. under section 185.
(1) Any loan made by a holding company to its wholly owned subsidiary company or any guarantee given or security provided by a holding company in respect of any loan made to its wholly owned subsidiary company is exempted from the requirements under this section; and
(2) Any guarantee given or security provided by a holding company in respect of loan made by any bank or financial institution to its subsidiary company is exempted from the requirements under this section:
Provided that such loans made under sub-rule (1) and (2) are utilised by the subsidiary company for its 1[principal] business activities. ]
Amendments
1. Substituted by the Notification dated 18th March 2015.
In the proviso, for the word "principle" the word "Principal" shall be Substituted.
2. Omitted by Notification Dated 14th December, 2015. |