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Core Investment Company

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Core Investment Company

Core Investment Company is a type of NBFC which hold shares, bonds and debentures but are not allowed to trade in any of the instruments they hold, CIC are required to be registered with RBI under section 45 IA of the RBI Act 1934 and obtain a Certificate of Registration (CoR).

Key features of the Core Investment company are:-
  • At least 90% of its total assets should be in form of investment of any of the listed i.e. equity shares, preference shares, debentures, debt or loan in the group.
  • At least 60% of its net assets should be in form of investment in the equity shares as on the date of last audited balance sheet.
  • It should not trade in its own investment in form of shares, bonds, debentures or debt or loan in its own group companies, except through block safe for dilution or disinvestment
  • It carry out any activity mentioned in section 45-1(C) and 45-1(F) of the RBI Act, except investing in-

●  Bank Deposits

●  Money Market Instruments
●  Government Securities
●  Guarantees Issued on behalf of Group Companies
●  Bonds or Debentures issued by Group Companies /Loans to      Group Companies

Categories of Core Investment Company

Document Required

RBI mentions a comprehensive list of all the documents to register itself as CIC, nearly 52 documents are required but still that itself is not an exhaustive list, RBI may ask for other necessary documents, if required.

  • Details of access to Public Funds.
  • Application to be submitted in two separate sets properly in two separate files with properly enumerated pages.
  • Identification Details (Annex I).
  • Statement on prudential norms (Annex II).
  • Any change in the management of the company during the last financial year till date, its details, and reasons thereof.

Activities to carry out by Core Investment Company (CIC)

Activities to carry out by Core investment company (CIC)