Companies Act: How Useful Is The ‘Two Layers Of Subsidiaries’ Rule?

A recent notification by the Ministry of Corporate Affairs restricts the ability of certain companies to create multiple layers of subsidiaries. The notification is being seen as the government’s attempt to address opaque fund-raising activities, and intensify the crackdown on black money and shell companies. But the carve-outs that come with this attempt may defeat the purpose, experts told Bloomberg Quint.

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