Reserve Bank of India
Date : Apr 10, 2023
RBI simplifies the application process for registration of Core Investment Companies
The Reserve Bank has undertaken a comprehensive review of the system of processing of applications for registration as Core Investment Companies (CICs) to make the registration process smoother and hassle free. Accordingly, the application form has been revamped to make it structured and aligned with the extant CIC regulations. Also, the number of documents to be furnished along with the application form has been reduced to 18 from the existing set of 52 documents to make the registration process user friendly.
2. The revised application form together with an indicative list of documents/information to be furnished along with the application has been uploaded on the RBI website. It may be noted that the documents to be furnished along with the application are indicative and not exhaustive. The Reserve Bank, may, if necessary, call for further document/s to satisfy itself on the eligibility of the company seeking registration as a CIC. In the event of the Reserve Bank calling for further documents in addition to those mentioned in the list, the applicant company must respond within a stipulated time of one month.
(Yogesh Dayal)
Chief General Manager
Press Release: 2023-2024/44
An indicative list of documents/information to be furnished along with the application
|
Sr. No. |
Requirements to be complied with and documents to be submitted by companies for obtaining Certificate of Registration (CoR) as Core Investment Company (CIC) | Page No. as in the file |
| 1 | Details of access to public funds. If the company does not have public funds but intends to access public funds anytime in the future and therefore applying for the CoR, they have to submit the Board Resolution to the effect that they intend to raise resources through public funds at a future date. | |
| 2 | Certified copy of Certificate of Incorporation of the company. | |
| 3 | Certified copy of extract of only the main object clause in the MoA relating to the financial business. | |
| 4 | Credit Bureau Report pertaining to the directors of the company. | |
| 5 | Copy of experience certificate, if any, in the financial services sector in respect of all the directors/promoters. | |
| 6 | Board Resolution specifically approving the submission of the application and its contents and authorising signatory. | |
| 7 | Board Resolution to the effect that the company has not accepted/solicited any public deposit and will not accept the same in future without the prior approval of Reserve Bank of India in writing. | |
| 8 | Board resolution stating that the company was not trading/ will not trade in its investments in shares, bonds, debentures, debt or loans in group companies except through block sale for the purpose of dilution or disinvestment. | |
| 9 | Board resolution stating that the company does not carry on any other financial activity referred to in Section 45I(c) and 45I(f) of the Reserve Bank of India Act, 1934 except
i) investment in
ii) granting of loans to group companies iii) issuing of guarantees on behalf of group companies |
|
| 10 | Statutory Auditor/s Certificate certifying Average Market Price of quoted investments. | |
| 11 | Statutory Auditor/s Certificate certifying the number of CICs (registered or unregistered) in the group. | |
| 12 | Statutory Auditor/s Certificate certifying the net asset size of the company and investment in group companies as percent of its net assets. | |
| 13 | Statutory Auditor/s Certificate certifying investments in equity shares (including instruments compulsorily convertible into equity shares within a period not exceeding 10 years from the date of issue) in group companies as percent of its net assets. | |
| 14 | A certificate from Statutory Auditor/s providing the details of companies in the group. Details should include name of the company, line of activity, place of incorporation, shareholding pattern, name of the financial regulator, if any, asset size, net-worth, and profit after tax for last three financial years. | |
| 15 | Last three years audited Balance Sheet and Profit & Loss Account along with directors & auditors report or for such shorter period as are available (for companies already in existence). | |
| 16 | Business plan of the company for the next three years along with its projected Balance Sheets. | |
| 17 | A company which is already in existence and whose (i) minimum Capital Ratio in terms of
Adjusted Net Worth is less than 30% of its aggregate risk weighted assets on Balance Sheet and risk adjusted value of off-balance sheet items as on the date of the last audited Balance Sheet, and/or (iii) a Leverage Ratio where its outside liabilities are exceeding 2.5 times its Adjusted Net Worth as on the date of the last audited Balance Sheet, as on the date of application, may also furnish a time-bound plan as to how it proposes to adhere to these requirements. |
|
| 18 | A company which proposes to become a CIC but does not qualify in terms of 90% of net assets under investments may also submit a time bound action plan as to how it would achieve such eligibility. |
Note:
(1) The above list of documents is indicative and not exhaustive. The Bank can, if necessary, call for any further documents to satisfy themselves on the eligibility for obtaining registration as CIC.
(2) In the event of the Bank calling for further documents in addition to those mentioned above, the applicant company is supposed to respond within a stipulated time of one month failing which the original CoR application may be returned to the company for resubmission afresh with the required information/documents.
