Core Investment Company

Package Inclusion :

  • Their core business activity is borrowing and lending money only to its members.
  • We help to create business plan
  • Advisory on Global expansion 


Core Investment Company

What is Core Investment Company?

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

None of the Core Investment companies can accept deposits. This is one of the basic eligibility criteria of a Core Investment Company. The asset classification norms for CIC's are:-

General Obligation for a Core Investment Company

As per the Core Investment Companies (Reserve Bank) Directions, 2016, the following need to be fulfilled by all CICs, as per the last audited balance sheet:-

The Core Investment Company needs to hold not less than 90% of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies. The balance 10% of Net assets that the CIC’s can hold outside the group include real estate or other types of fixed assets that are essential for running the company but cannot be financial investments or loans in non-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 investment of the company in the shares of the group companies need to be at least 60% of the net worth of its assets.

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 can invest in bank deposits; money market mutual fund, liquid mutual funds, and other money market instruments; government securities; bonds and debentures of group companies; and granting of loans to group companies.

The Process of Registration of CIC-ND-SI


The Process of Registration of CIC-ND-SI


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. The DNBS has to be the one under whose jurisdiction the company is registered. The CIC's that are exempted from registration, however, need to pass a Board Resolution that they will not in the future indulge in accessing public funds.

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