NBFC Core Investment Company

NBFC Core Investment Company (CIC)

Some business groups don’t want to run a lending business. They simply want one holding company that owns shares, provides strategic direction, and manages group investments. That’s where an NBFC Core Investment Company comes in.

A CIC doesn’t deal with the public. It holds at least 90% of its net assets in group equity, preference shares, or debt instruments and keeps business activities internal. But because it sits at the center of a financial ecosystem, RBI regulates it carefully.

We help corporate promoters set up, structure, register, and maintain CIC compliance with confidence.

What We Assist With

Registration & Structuring

  • Determining CIC classification and eligibility

  • Company incorporation aligned with RBI requirements

  • Shareholding and group structure planning

  • Drafting MoA/AoA with investment-focused objects

RBI Compliance & Registration

  • Application drafting, annexures, declarations

  • Financial, net asset, and valuation documentation

  • Uploading and tracking approval status

  • Handling queries and clarifications

Post-Registration Compliance

  • Annual return filing and statutory reporting

  • Monitoring NOF, leverage, and asset composition

  • Policy drafting: KYC, risk, governance, investment

  • Internal audit, RBI inspection support

Corporate Group Support

  • Inter-company loans, guarantees, and investments

  • FEMA, FDI, and funding compliance

  • Restructuring, mergers, demergers, and exits

Key Eligibility Criteria

  • Company incorporated in India

  • At least 90% of net assets invested in group companies

  • Not less than 60% of net assets in group equity shares

  • Does not trade investments except for strategic divestment

  • Does not accept public deposits

  • Meets prescribed Net Owned Fund requirements (₹100 crore for CICs requiring RBI registration)

Documents Required

  • COI, MoA, AoA, PAN, CIN

  • Audited financial statements

  • Group structure chart and shareholding breakup

  • Board and shareholder resolutions

  • Net worth certificates and NOF computation

  • Director KYC, profiles, credit reports

  • Business and investment policy framework

Timeline

  • Entity incorporation: 7–12 days

  • Application preparation: 3–5 weeks

  • RBI approval: depends on complexity and review cycle

Why Groups Choose a CIC Structure

  • Clean holding and governance framework

  • Simplifies funding, guarantees, and cross-group investments

  • Improves transparency for investors, lenders, and regulators

  • Helps manage risk, ownership, and long-term strategy

  • Regulatory credibility and governance discipline

Frequently Asked Questions

1. What makes a CIC different from a regular NBFC?

A CIC holds investments in group companies and doesn’t engage in lending to the public.

 

2. Do all CICs need RBI registration?

Only Systemically Important CICs with asset size of ₹100 crore or more.

 

3. Can a CIC give loans or guarantees to group entities?

Yes, subject to RBI and company law restrictions.

 

4. Does a CIC need a statutory audit?

Yes. It must comply with Companies Act and RBI reporting requirements.

 

5. Can foreign shareholders invest in a CIC?

Yes, subject to FEMA, FDI, and sectoral guidelines.