Hi, 

Yes he can do so as per Companies Act 2013:

Under section 185:

Restrictions of Sub Section (1) and (2) shall not be applicable on following transactions: 

• the giving of any loan to a managing or whole-time director— 

(i) as a part of the conditions of service extended by the company to all its employees; or 

(ii) pursuant to any scheme approved by the members by a special resolution; or 

• a company which in the ordinary course of its business provides loans or gives guarantees or securities for the due repayment of any loan and in respect of such loans an interest is charged at a rate not less than the rate of prevailing yield of one year, three years, five years or ten years Government security closest to the tenor of the loan;

• Any loan made by a Holding Company to its Wholly own subsidiary company or any guarantee given or security provided by a Holding Company in respect of any loan made to its wholly own subsidiary Company Give any guarantee in connection with any loan taken 

• Any guarantee is given or security provided by a Holding Company in respect of Loan made by any Bank or financial institution to its subsidiary Company.

 Conditions:

In case of Guarantee on behalf of the Subsidiary loan made under this clause utilized by the subsidiary company for its principal business activity only.

You may readd following article at Blogs.compliancecalendar.in 

https://blogs.compliancecalendar.in/loan-to-subsidiary-wholly-own-subsidiary-under-section-185-companies-act-2013-by-jaya-ahuja-332

In case of corporate guarantee or Guarantee on behalf of Wholly Owned Subsidiaries (WOSs)/Joint Ventures (JVs) abroad  

Issue of guarantee by an Indian Party to step down subsidiary of JV / WOS

(a) Indian Parties are permitted to issue corporate guarantees on behalf of their first level step down operating JV /WOS set up by their JV / WOS operating as either an operating unit or as a Special Purpose Vehicle (SPV) under the Automatic Route, subject to the condition that the financial commitment of the Indian Party is within the extant limit. Such guarantees will have to be reported to the Reserve Bank in Form ODI, as hitherto, through the designated AD Category – I bank concerned.

(b) Further, the issuance of corporate guarantee on behalf of second generation or subsequent level step down operating subsidiaries will be considered under the Approval Route, provided the Indian Party indirectly holds 51 per cent or more stake in the overseas subsidiary for which such guarantee is intended to be issued.

Many Thnaks SARIKA SHARMA.