Introduction
A holding company is a type of business entity that owns one or more subsidiaries. Subsidiaries are separate legal entities that are owned by the holding company. The question is whether it is compulsory for a holding company to purchase the equity shares of a subsidiary company.

No Legal Obligation
There is no legal obligation for a holding company to purchase the equity shares of a subsidiary company. The holding company has the option to purchase the equity shares of the subsidiary company, but it is not compulsory.

Reasons for Purchasing Equity Shares
There are several reasons why a holding company may choose to purchase the equity shares of a subsidiary company. Some of these reasons include:

- Control: By purchasing the equity shares of a subsidiary company, the holding company can gain control over the subsidiary and its operations.
- Strategic reasons: The holding company may purchase the equity shares of a subsidiary company for strategic reasons such as expanding into new markets or diversifying its business operations.
- Financial reasons: The holding company may purchase the equity shares of a subsidiary company to improve its financial position. For example, the holding company may want to consolidate the financial statements of the subsidiary company with its own financial statements.

Conclusion
In conclusion, there is no legal obligation for a holding company to purchase the equity shares of a subsidiary company. However, there may be strategic or financial reasons why a holding company may choose to purchase the equity shares of a subsidiary company.