Overview of Core Investment Company Registration

Core Investment Company [email protected]

A Core Investment Company (CIC) is categorized as a Non Banking Financial Company (NBFC) by the Reserve Bank of India (RBI). These companies predominately invest in shares of its own group companies for stakeholding but cannot engage in trading of these instruments or carry out any other kind of financial activity.

CATEGORIES OF CORE INVESTMENT COMPANY Registered CIC’s with assets For those with assets more less than Rs. 100 crore worth than Rs. 100 core follows the follow the norms specified in norm as specified in the Non-Systematically Systematically Important NBFC Important NBFC Prudential Prudential Norms Directions, Norms, 2015. 2015.

Approval Requirements for Core Investment Company All Core Investment Companies are required to be registered with the Reserve Bank of India under section 45 IA of the RBI Act 1934 and thereby obtain a Certificate of Registration.

General The investment of the company in the shares of the Obligation for a group companies need to be at least 60% of the net Core Investment worth of its assets. Company The Core Investment Company is not allowed to carry out any other financial activity other than,the company can issue guarantees on behalf of group companies It cannot trade in its investments in shares, bonds, debentures, debt or loans in group companies except through block sale with the purpose of diluting or disinvestment.

THE PROCESS OF The Core Investment Company needs to REGISTRATION OF download the application form for CORE INVESTMENT registration from the website of RBI. COMPANY It needs to be filled in and submitted to the Regional Office of DNBS (Department of Non-Banking Supervision) along with the supporting documents as mentioned in the form.

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