Core Investment Company (CIC)


Ajit Kumar AJIT KUMARWISDOM IAS, New Delhi.

A CIC is a Non-Banking Financial Company. The company carries on the business of acquisition of shares and securities.
(a) Its asset size should be of Rs 100 crore and above.
(b) It should hold not less than 90 per cent of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies; and
(c) its investments in the equity shares in group companies constitutes should not be less than 60 per cent of its net assets as on the date of the last audited balance sheet.
This Concept was originated in order to safeguard NBFCs which are formed for group investments from stringent RBI procedures. 




Thursday, 08th Nov 2018, 06:50:56 PM

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