Is the Companies Bill 2013 carrying away India Inc's flexibility?

Bangalore: The Companies Bill 2013 has come up with many new rules; few of them are comforting to the Indian corporate sector while many are disconcerting. One particular concept that is disturbing the Indian organizations is that the companies can make investments through “not more than” two layers of investment companies, reports K.R.Srivats of The Hindu, Business Line.

The Companies Bill has been passed by India’s Upper House of Parliament, Rajya Sabha on 2013. Following which a number of hue and cries came from the Indian corporate. Few corporate giants believe that a limitation on the corporate structure would have negative impact on the growth and development of the Indian incorporations. While their international counterparts have a flexible corporate structure, a restriction on the Indian companies to have two or less than two layers of investment companies could be dampening. On top of this, the number of step-down subsidiaries that any class of holding companies can have is also kept under the control of the Centre.

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