Hie Uma, **Exemption for the applicability of Section 186(1)** Nothing contained in this section, except sub-section (1), shall apply - A. To a loan made, guarantee given or security provided by a banking company or an insurance company or a housing finance company in the ordinary course of its business or a company engaged in the business of financing of companies or of providing infrastructural facilities; B. To any acquisition - - made by a non-banking financial company registered under Chapter IIIB of the Reserve Bank of India Act, 1934 and whose principal business is acquisition of securities in respect of its investment and lending activities; - made by a company whose principal business is the acquisition of securities; - of shares allotted in pursuance of section 62(1) (a).

Sub-section (11) of Section 186 of the Companies Act, 2013 provides that Nothing contained in Section 186, except sub-section (1) of section 186 shall apply - (a) to a loan made, guarantee given or security provided by a banking company or an insurance company or a housing finance company in the ordinary course of its business or a company engaged in the business of financing of companies or of providing infrastructural facilities; (b) to any acquisition - (i) made by a non-banking financial company registered under Chapter IIIB of the RBI Act, 1934 and whose principal business is acquisition of securities; The exemption to non-banking financial company shall be in respect of its investment and lending activities; (ii) made by a company whose principal business is the acquisition of securities; (iii) of shares allotted in pursuance of clause (a) of sun-section (1) of Section 62; (iv) made by a banking company or an insurance company or a housing finance company, making acquisition of securities in the ordinary course of its business.

The Section 186 (except Sub Section 1) of the Companies Act, 2013 does not apply to the following: (a) to a loan made, guarantee given or security provided by a banking company or an insurance company or a housing finance company in the ordinary course of its business or a company engaged in the business of financing of companies or of providing infrastructural facilities; (b) to any acquisition— (i) made by a non-banking financial company registered under Chapter IIIB of the Reserve Bank of India Act, 1934 and whose principal business is acquisition of securities: Provided that exemption to non-banking financial company shall be in respect of its investment and lending activities; (ii) made by a company whose principal business is the acquisition of securities; (iii) of shares allotted in pursuance of clause (a) of sub-section (1) of section 62. Thanks