Ms. Waghmare, before giving a definitive answer to your question, it shall be necessary to get more facts about the situation, more specifically about the reason for which holding company is purchasing the share and nature of the holding company. However, the answer is yes only and only if the answer to any of the following questions is yes:
1. - Is the holding company a private company and the subsidiary company also a private company?
2. - Is the holding company purchasing shares as a trustee for the benefit of employees?
If any of the above conditions are not satisfied, then the answer to the case situation is no. Section 77 of Companies Act lays down the law on the subject
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