Under Section 186, a company may make inter-corporate loans, give guarantees, or acquire securities up to 60% of its paid-up share capital + free reserves + securities premium by a simple board resolution. If the aggregate of such loans, guarantees, and investments exceeds 60% of that amount, or exceeds 100% of its free reserves and securities premium (whichever is higher), a Special Resolution must be passed in a general meeting. The rate of interest on such loans must not be lower than the prevailing yield of government securities of similar maturity.