Core Investment Company Registration in India

Get expert support for Core Investment Company registration in India, including RBI application filing, eligibility review, document preparation, group structure review, and compliance advisory.
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Core Investment Company Registration in India

A Core Investment Company, or CIC, is a type of NBFC that mainly holds investments in group companies. Core Investment Company registration in India is regulated by the Reserve Bank of India under Chapter III B of the RBI Act, 1934. RBI defines a CIC as a company with asset size of ₹100 crore and above that carries on the business of acquisition of shares and securities, subject to specific conditions.

A CIC is different from a regular investment company because its primary purpose is to hold shares, preference shares, bonds, debentures, debt, or loans in group companies. RBI requires a CIC to hold at least 90% of its net assets in investments, debt, or loans in group companies. It must also follow restrictions on trading, public deposits, group exposure, public funds, and other financial activities.

What is a Core Investment Company?

A Core Investment Company is a non-banking financial company that mainly holds investments in its group companies. These investments may include equity shares, preference shares, bonds, debentures, debt instruments, or loans.

A CIC is generally used by business groups to hold investments in group entities under a regulated structure. It is not meant for regular trading in securities or general lending to outside parties.

Key Conditions for Core Investment Company Status

To qualify as a CIC, the company must satisfy RBI’s conditions as per the last audited balance sheet.
01

Investment in Group Companies

At least 90% of the CIC’s net assets must be held in the form of investments, debt, or loans in group companies.

02

Restriction on Other Financial Activities

A CIC cannot carry on other financial activities, except those allowed by RBI, such as investment in bank deposits, government securities, money market instruments, loans to group companies, investments in group debt issuances, and guarantees issued for group companies.

03

No Regular Trading in Investments

A CIC cannot trade its investments in group companies. Sale is generally allowed only through block sale for dilution or disinvestment.

04

Public Funds Condition

Public funds include public deposits, inter-corporate deposits, bank finance, commercial papers, debentures, and funds received from outside sources directly or indirectly. RBI clarifies that public funds are not the same as public deposits.

05

Public Deposits Not Allowed

A CIC cannot accept public deposits. RBI states that CICs cannot accept public deposits.

Registration Requirement for Core Investment Company

A CIC may need RBI registration based on its asset size and use of public funds.

CICs with asset size below ₹100 crore are not required to register with RBI. CICs with asset size of ₹100 crore and above but not using public funds are also treated as unregistered CICs and are not required to register with RBI.

A CIC that has asset size of ₹100 crore or more and uses public funds must obtain Core Investment Company RBI registration. RBI also states that a company seeking CIC registration can apply in the prescribed format through the RBI Pravaah Portal.

Who Should Apply for CIC Registration?

Group Holding Structures

Promoter and Group Holding Entities

CIC registration may be relevant for promoter holding companies, business groups with investment-holding entities, and companies holding investments in group companies.

Promoter and Group Holding Entities

Financial Investment Entities

NBFCs and Investment Entities

NBFCs converting into a CIC structure and entities planning overseas investment in the financial sector may need to review CIC registration requirements.

NBFCs and Investment Entities

Corporate Family Groups

Family-Owned Corporate Groups

Family-owned corporate groups with layered holding structures or long-term group investments may also fall under CIC review.

Family-Owned Corporate Groups

Capital Raising Companies

Public Fund-Raising Entities

Companies raising public funds for group investment activity should assess their RBI obligations before proceeding.

Public Fund-Raising Entities
Each case must be reviewed based on asset size, group structure, source of funds, investment pattern, and RBI conditions.

Documents Required for Core Investment Company Registration

The documents required for Core Investment Company registration may vary based on the company structure, ownership pattern, group entities, and RBI review. Common documents are as follows:

Company Incorporation Documents

Certificate of incorporation

Memorandum of Association and Articles of Association

PAN and CIN details

Board resolution for CIC registration

Management and Ownership Documents

Details of directors and key managerial personnel

Shareholding pattern

Group structure chart

Details of group companies

Financial Documents

Audited financial statements

Net asset calculation

Public funds details

Outside liabilities details

Investment schedule

Source of funds records

RBI Application and Supporting Records

RBI application form

Business activity note

Statutory auditor certificate

Compliance and Policy Documents

Compliance policy documents

KYC and AML policy, where applicable

Group Exposure and Guarantee Details

Details of guarantees issued for group companies

Process for Core Investment Company Registration in India

01
Step 1

Eligibility Review

The first step is to review the company’s asset size, investment pattern, public funds position, net assets, and group structure. This helps confirm if RBI registration is required.

02
Step 2

Group Structure Review

The company’s relationship with group entities must be checked carefully. RBI’s CIC framework covers defined group relationships, including parent-subsidiary, associate, joint venture, related party, common name, promoter-promotee, and equity investment of 20% and above.

03
Step 3

Financial and Asset Review

The company’s audited balance sheet must be reviewed to check the 90% net asset condition, outside liabilities, adjusted net worth, public funds position, and exposure to group companies.

04
Step 4

Document Preparation

The application pack must include company documents, director details, financial records, auditor certificates, group details, fund source documents, investment details, and declarations required by RBI.

05
Step 5

RBI Application Filing

The CIC registration application is submitted through RBI’s Pravaah Portal in the prescribed format. RBI may ask for clarifications or extra documents during the review.

06
Step 6

RBI Review

RBI reviews the applicant’s structure, financial position, group investments, source of funds, public funds use, governance, and compliance history.

07
Step 7

Certificate of Registration

If RBI is satisfied, it may issue the Certificate of Registration. After registration, the CIC must follow applicable RBI directions and ongoing compliance requirements.

Ongoing Compliance for Core Investment Companies

Registered CICs must follow applicable RBI directions after receiving registration. Compliance may include:

Investment and Asset Monitoring

Maintaining required investment pattern

Tracking net assets and public funds

Maintaining records of group investments

Monitoring outside liabilities

Governance and Internal Review

Board-level review of compliance

Following RBI directions on permitted activities

RBI Filings and Reporting

Filing RBI returns, where applicable

Reporting overseas investments, if applicable

Audit and Documentation

Keeping statutory auditor certificates ready

KYC and AML Controls

Maintaining KYC and AML controls, where applicable

RBI also clarifies that CICs making overseas investment in the financial sector require prior approval from the Department of Regulation, RBI. Registered CICs making overseas investment in the non-financial sector need to report such investment within 30 days.

Why Choose IMC for Core Investment Company Advisory

RBI-Focused Registration Support

IMC helps companies understand if CIC registration is required and prepares the application based on RBI’s CIC framework.

Group Structure Review

CIC classification depends heavily on group investments and ownership links. IMC reviews the holding structure, group entities, investment pattern, and related party position before filing.

Documentation Support

We assist with financial records, auditor certificates, company documents, board papers, investment schedules, public funds details, and RBI application documents.

Support for Holding Companies and NBFCs

IMC works with promoter groups, holding companies, NBFCs, investment entities, and business groups planning CIC registration or restructuring.

Post-Registration Compliance

After registration, IMC supports ongoing RBI compliance, reporting, policy updates, and internal documentation. A Core Investment Company compliance consultant, helps companies track investment patterns, public funds, outside liabilities, group exposure, RBI filings, and board-level records.

FAQs
A Core Investment Company is an NBFC that mainly holds investments in group companies through shares, debt instruments, loans, or similar permitted instruments.
Core Investment Companies are regulated by the Reserve Bank of India under the RBI Act, 1934 and applicable CIC directions.
No. CICs with asset size below ₹100 crore are not required to register. CICs with asset size of ₹100 crore and above but not using public funds are also not required to register. A CIC with asset size of ₹100 crore or more and using public funds must register with RBI.
No. CICs cannot accept public deposits. RBI has clearly stated that CICs cannot accept public deposits.
A CIC cannot carry out regular trading in its investments in group companies. Sale is generally allowed only for dilution or disinvestment.
A CIC must hold at least 90% of its net assets in investments, debt, or loans in group companies.
A CIC can hold up to 10% of its net assets outside the group, but RBI clarifies that this may include assets needed for the company’s functioning and should not include financial investments or loans in non-group companies.
Yes, an existing NBFC may seek CIC classification if it meets the required conditions. RBI may require a fresh application or deregistration process based on the facts of the case.
RBI states that CIC registration applications can be made in the prescribed format through the Pravaah Portal.
Yes. IMC assists with eligibility review, RBI application preparation, group structure review, financial documentation, compliance support, and RBI query responses.
Yes. A registered CIC must keep track of investment pattern, public funds, outside liabilities, group exposure, RBI filings, board records, and policy documentation. Core Investment Company compliance in India is important because errors in reporting, public funds classification, or investment structure can create regulatory issues during audits, restructuring, or RBI review.
Your company may need CIC registration if it mainly holds investments in group companies, has asset size of ₹100 crore or more, and uses public funds. IMC can review your balance sheet, group structure, investment pattern, and funding sources to confirm the registration requirement.