<h1>RBI Sets New Rules for Core Investment Companies' Overseas Investments; Prior Approval Needed for Financial Sector Deals.</h1> The Reserve Bank of India (RBI) issued new directions for Core Investment Companies (CICs) regarding overseas investments. CICs, primarily investing in group companies, must obtain prior approval from the RBI for investments in the financial sector abroad. Exempted CICs need a Certificate of Registration for such investments. Investments in the non-financial sector do not require registration but must be reported to the RBI. The directions outline eligibility criteria, including maintaining a minimum Adjusted Net Worth and limiting non-performing assets. CICs must ensure compliance with the Foreign Exchange Management Act and submit regular reports to the RBI. Violations may lead to penalties.