Inter‑corporate investments ‑ In excess of limits ‑ Scope of the section clarified and explained

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..... he section clarified and explained Reference is made to the clarification contained in item 3 under the caption Clarifications of the Circular Letter No. 48(50)‑CL‑VI/61, dated 12‑2‑1962 [printed as Clarification 1]. In a recent case a company made investments in the shares of another company without obtaining the approval under section 372 even though by making .....

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..... from calculation in consi-dering the limits prescribed in sub‑section (2) and the proviso thereto. As sub‑section (14) of section 372 provides that this section shall not apply to certain companies and to certain types of investments mentioned in clauses (a) to (e) of that sub‑section, it virtually means that the limits placed by the section on the power of an investing company t .....

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