Investments by exempted companies are covered under the section even after cessation of exemption - Companies Law - No. 7(41)‑CL‑VI/ 66,

Circular Letter : No. 7(41) ‑ CL ‑ VI/ 66, dated 1 ‑ 5 ‑ 1967. Subject:- I nvestments by exempted companies are covered under the section even after cessation of exemption Sub‑section (14) of section 372 provides that the provisions of section 372 shall not apply to (a) any banking or insurance company; (b) a private company, unless it is a subsidiary of a public company; (c) any company established with the object of financing, whether by way of making loans or advances to, or subscribing to the capital of, private industrial enterprises in India, in any case where the Central Government has made or agreed to make to the company a special advance for the purpose or has guaranteed or agreed to guarantee the payment of moneys borrowed by the company from any institution outside India; (d) investment by a holding company in its subsidiary; or (e) investments made by a managing agent or secretaries and treasurers in a company managed by him or them. The legal position regarding the continuation of inter‑corporate investments made by the above mentioned exempted companies after they cease to be so exempted being similar, the administrative instructions of the Company Law Board as mentioned under section 295(2) will also apply to such investments mutatis mutandis.