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.