Investments by exempted companies are covered under the section even after cessation of exemption - Companies Law - No. 13(98)‑CL‑VI/67,

Letter : No. 13(98) ‑ CL ‑ VI/67, dated 24 ‑ 2 ‑ 1971. Subject:-I nvestments by exempted companies are covered under the section even after cessation of exemption Attention is invited to Department s Circular Letter No. 7(41)‑CL‑VI/66, dated 1‑5‑1967 [printed here as Clarification 2]. On reconsideration of the question whether continuation of investments after cessation of exemption would require compliance of this section, the Company Law Board has been advised that the inter‑corporate investments made by the exempted companies mentioned in sub‑section (14) of section 372, and are outstanding after the cessation of exemption under sub‑section (14), would not come within the restrictions contained in section 372 and the compliance of the said section would not, therefore, be required in this regard.