Crackdown on shell firms: India Inc may have to go on restructuring drive

Govt move to limit number of subsidiaries to help regulators track illicit transactions

A restructuring drive may be in the offing for corporate India following the recent government decision to bring down the number of subsidiaries in a company to two layers. The corporate affairs ministry on Friday issued a notification in this regard.

The move by the government is seen as part of its effort to crack down on shell companies. Experts say the limited number of layers will ensure that a company does not use shell structures to launder money and evade taxes. Indian companies will have to restructure themselves to fall in line with this amendment. 

“The existing companies having