Can a subsidiary company hold shares of its holding company?  

Yes, a subsidiary company can hold shares of its holding company. This is known as a cross-shareholding structure, often used for strategic or financial reasons within a corporate group. It allows for tighter integration between the subsidiary and the holding company, facilitating better coordination, control, and alignment of interests. However, such arrangements must comply with relevant legal and regulatory requirements governing inter-corporate investments and shareholding structures to ensure transparency and prevent conflicts of interest.