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

Core Investment Company classification requires concentrated group investments and restricted trading to qualify for regulatory treatment.
A Core Investment Company is a non-banking financial company whose business is acquisition of shares and securities and which, as on the date of the last audited balance sheet, holds at least 90% of its total/net assets in investments in group companies and at least 60% of its total/net assets in equity (including certain convertible instruments) of group companies; net assets exclude cash, money market investments, advance tax and deferred tax; the CIC must not trade such investments except by block sale and may only undertake a limited set of permitted activities including specified investments, loans to group companies and guarantees for group companies.