CORE INVESTMENT COMPANIES HAVE TO REGISTER WITH RBI

Core investment companies with an asset size of Rs. 100 crore will be considered as Systemically Important Core Investment Companies and will have to be registered with the Reserve Bank of India. The companies which have their assets predominantly as investments in shares for holding stake in group companies but not for trading, deserve a regulatory treatment applicable to non-banking financial companies which are not-deposit-taking and systemically important. The RBI also said that the leverage ratio (ratio of outside liabilities to the adjusted net worth) should not exceed 2.5 times and CICs should maintain a minimum capital ratio whereby the Adjusted Net Worth shall not be less than 30 per cent of the aggregate risk-weighted assets on balance sheet