Proposed Regulatory Framework for Systemically Important Non Deposit Accepting Core Investment Compa

[ASHISH TIWARI]

My query is in relation to the recent draft guidilines issued by RBI i.e.:Proposed Regulatory Framework for Systemically Important Non Deposit Accepting Core Investment Companies (CIC-ND-SI). One of the Group Co.(unlisted) is holding 55% of Equity of Other Group Companies(unlisted)and not regulary trading those shares.At the same time the said holding Company as and when require infuse the funds in the various Group Companies by way of Share Capital/Unsecured Loans. Whether such holding Company would fall with in the definition of Core Investment Companies. Please guide me where I can find the definition of Core Investment Companies.

AI Summary

Discussion on RBI Draft Guidelines: Applicability to Unlisted Holding Companies as Core Investment Companies Explained A participant in a discussion forum inquired about the applicability of the Reserve Bank of India's draft guidelines on Core Investment Companies (CIC-ND-SI) to a specific unlisted holding company. This company holds a significant equity stake in other unlisted group companies and provides them with capital through share capital and unsecured loans. Another participant clarified the definition of a Core Investment Company, explaining that it must hold a substantial portion of its assets in group company investments, not engage in trading these investments except under specific conditions, and refrain from other financial activities outside specified exceptions.