Stories
RBI Grants Core Investment Company Status to Indiabulls, Enhancing Regulatory Oversight
- •The Reserve Bank of India (RBI) has issued a Certificate of Registration to Indiabulls Limited as a Core Investment Company (CIC).
- •This registration brings Indiabulls under the RBI's regulatory framework for investment-holding entities.
- •Indiabulls, formerly Yaari Digital Integrated Services Limited, disclosed the approval in a regulatory filing on October 2.
- •A CIC is a non-banking financial company that primarily invests in and funds its own group companies, rather than engaging in conventional lending.
- •Indiabulls noted that the certificate might be surrendered if the CIC framework is deemed inapplicable after further evaluation.
Key Questions Answered
A Core Investment Company is a non-banking financial company that primarily holds investments in and funds its own group companies rather than engaging in conventional lending. Under RBI norms, a CIC typically maintains at least 90 percent of its net assets in group investments or loans, with a minimum of 60 percent comprising equity investments in those group companies.
The Reserve Bank of India granted Indiabulls Limited a Certificate of Registration as a Core Investment Company, bringing the company under the central bank's regulatory framework for investment-holding entities. This classification reflects the nature of its investment-holding business rather than serving as an approval to launch new consumer-facing banking or lending operations.
Yes, Indiabulls noted in its regulatory filing that the certificate could subsequently be surrendered if the CIC framework is determined not to apply to the company. The company stated that it is currently evaluating the non-applicability of the framework to its operations.
