2[ 10 Loans to Director etc. under section 185.
(1) Any loan made by a holding company to its wholly owned subsidiary company or any guarantee given or security provided by a holding company in respect of any loan made to its wholly owned subsidiary company is exempted from the requirements under this section; and
(2) Any guarantee given or security provided by a holding company in respect of loan made by any bank or financial institution to its subsidiary company is exempted from the requirements under this section:
Provided that such loans made under sub-rule (1) and (2) are utilised by the subsidiary company for its1[principal] business activities. ]
Amendments
1. Substituted by the Notification dated 18th March 2015.
In the proviso, for the word "principle" the word "Principal" shall be Substituted.