law: Companies Act, 2013 
  187.
  
    Investments
  
  of company to be held in its own name.
  1.      All investments made
  
  or held by a company in any property, security or other asset shall be made and
  
  held by it in its own name:
  Provided
  
  that the company may hold any shares in its subsidiary company in the name of
  
  any nominee or nominees of the company, if it is necessary to do so, to ensure
  
  that the number of members of the subsidiary company is not reduced below the
  
  statutory limit.
  2.      Nothing in this
  
  section shall be deemed to prevent a company—
  a.     
  
    from
  
  depositing with a bank, being the bankers of the company, any shares or
  
  securities for the collection of any dividend or interest payable thereon; or
  
  of, the State Bank of India or a scheduled bank, being the bankers of the
  
  company, shares or securities, in order to facilitate the transfer thereof:
  Provided
  
  that if within a period of six months from the date on which the shares or
  
  securities are transferred by the company to, or are first held by the company
  
  in the name of, the State Bank of India or a scheduled bank as aforesaid, no
  
  transfer of such shares or securities takes place, the company shall, as soon
  
  as practicable after the expiry of that period, have the shares or securities
  
  re-transferred to it from the State Bank of India or the scheduled bank or, as
  
  the case may be, again hold the shares or securities in its own name; or
  a.     
  
  
  b.     
  
  
  c.     
  
    from
  
  depositing with, or transferring to, any person any shares or securities, by
  
  way of security for the repayment of any loan advanced to the company or the
  
  performance of any obligation undertaken by it;
  d.    
  
    from
  
  holding investments in the name of a depository when such investments are in
  
  the form of securities held by the company as a beneficial owner.
  1.     
  2.     
  3.      Where in pursuance of
  
  clause (d ) of sub-section (2 ), any shares or securities in which
  
  investments have been made by a company are not held by it in its own name, the
  
  company shall maintain a register which shall contain such particulars as may
  
  be prescribed and such register shall be open to inspection by any member or
  
  debenture-holder of the company without any charge during business hours
  
  subject to such reasonable restrictions as the company may by its articles or
  
  in general meeting impose.
  4.      If a company
  
  contravenes the provisions of this section, the company shall be punishable
  
  with fine which shall not be less than twenty-five thousand rupees but which
  
  may extend to twenty-five lakh rupees and every officer of the company who is
  
  in default shall be punishable with imprisonment for a term which may extend to
  
  six months or with fine which shall not be less than twenty-five thousand
  
  rupees but which may extend to one lakh rupees, or with both.