What are holding companies? Give atleast three examples of holding companies from India.

What are
Finance holding companies and why did RBI feel the model of FHC to be introduced.

A holding company is a business entity—usually a corporation or limited liability company (LLC).

Typically, a holding company doesn’t manufacture anything, sell any products or services, or conduct any
other business operations. Rather, holding companies hold the controlling stock in other companies.
Although a holding company owns the assets of other companies, it often maintains only oversight
capacities. So while it may oversee the company's management decisions, it does not actively participate
in running a business's day-to-day operations of these subsidiaries. A holding company is also sometimes
called an "umbrella" or parent company.

There are two main ways through which corporations can become holding companies. One is by
acquiring enough voting stock or shares in another company; hence, giving it the power to control its
activities. The second way is by creating a new corporation from the ground up, and then retaining all or
part of the new corporation’s shares. Although owning more than 50% of the voting stock of another firm
guarantees greater control, a parent company can control the decision-making process even if it owns
only 10% of its stock.

Three examples of the holding companies are:-

1. Aditya Birla capital ltd

2. L$ T Finance holding ltd
3. Bajaj holding and investment