- The Reserve Bank of India(RBI) has set up a working group to review the regulatory and supervisory framework for core investment companies (CIC).
- The working group will examine (a)regulatory framework (b)enhance onsite and offsite surveillance of these companies (c)suggest changes in registration criteria including the practice of multiple CIC within a group and (d)other such assessment to strengthen the corporate governance framework.
- The working group has also been tasked with recommending appropriate measures to enhance RBI’s surveillance and supervision over CICs.
- CICs are Non-Banking financial companies(NBFC) with asset size of ₹100 crore and above which carry on the business of acquisition of shares and securities subject to certain conditions.
- CICs are allowed to accept public funds.They can hold not less than 90% of their net assets in the form of investment in equity shares,preference shares, bonds, debentures,debt or loans in group companies.
