Ministry of Corporate Affairs (“MCA”), releases the Companies (Restriction on number of layers) Rules, 2017
MCA, vide notification dated September 20, 2017, has released the Companies (Restriction on number of layers) Rules, 2017. By means of the above stated notification, the MCA now requires that no company, other than a company belonging to a class as specified herein below, shall have more than two layers of subsidiaries. The same is contained in subrule (1) of rule (2) of the Rules, 2017. The class of companies which is considered exempt from the mandate of only two layers of subsidiaries are:
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