Core Investment Company (CIC) registration is a specialized compliance requirement under Indian financial regulations. Companies primarily engaged in holding investments in group companies must understand whether they qualify as a CIC and whether registration is mandatory. In this Saving Mantra guide, we explain what a Core Investment Company is, its features, RBI rules, and registration requirements in a simple and practical manner.
What is a Core Investment Company (CIC)?
A Core Investment Company (CIC) is a type of Non-Banking Financial Company (NBFC) that:
- Acquires shares, debentures, or securities of its group companies
- Does not trade in these investments
- Does not carry out other financial activities like loans, leasing, or hire purchase (except to group companies)
CICs are regulated by the Reserve Bank of India under the RBI Act, 1934.
Key Conditions to Qualify as a CIC
A company is classified as a Core Investment Company if:
- At least 90% of net assets are invested in group companies
- At least 60% of net assets are in equity shares
- It does not accept public deposits
- It does not trade in its investments (except for dilution or disinvestment)
Types of Core Investment Companies
- CIC-ND (Non-Deposit Taking) – Below ₹100 crore asset size
- CIC-ND-SI (Systemically Important) – Asset size ₹100 crore or more (registration mandatory)
Is CIC Registration Mandatory?
✔ Mandatory if:
- Asset size is ₹100 crore or more
- Classified as Systemically Important CIC (CIC-ND-SI)
❌ Not mandatory if:
- Asset size is below ₹100 crore
- The company does not access public funds
However, even unregistered CICs must follow RBI’s prudential norms.
Benefits of Core Investment Company Registration
- ✔ Legal recognition by RBI
- ✔ Better group financial structuring
- ✔ Improved credibility with banks and investors
- ✔ Centralized control of group investments
- ✔ Regulatory clarity and compliance
Eligibility Criteria for CIC Registration
- Company must be registered under the Companies Act
- Net Owned Fund (NOF) of ₹100 crore or more
- Proper corporate governance structure
- Clear group company definition
Documents Required for CIC Registration
- Certificate of Incorporation
- Memorandum & Articles of Association
- Board resolution
- Net worth certificate from CA
- Group structure chart
- Audited financial statements
- Banker’s report
Overview of CIC Registration Process
Although this article focuses on what CIC registration is, the broad process includes:
- Determining CIC classification
- Ensuring capital adequacy
- Preparing RBI documentation
- Filing online application with RBI
- RBI scrutiny and approval
CIC Compliance Requirements
Registered CICs must comply with:
- Capital adequacy norms
- Leverage ratio limits
- Annual returns and disclosures
- Corporate governance standards
Difference Between NBFC and CIC
| Particular | NBFC | CIC |
|---|---|---|
| Lending to public | Yes | No |
| Investment focus | Mixed | Group companies |
| RBI Registration | Mandatory | Mandatory (if ≥₹100 Cr) |
Penalties for Non-Compliance
Failure to comply with CIC norms may result in:
- Monetary penalties
- Regulatory action by RBI
- Restrictions on business activities
Why Choose Saving Mantra?
- ✔ Expert RBI advisory support
- ✔ CIC classification analysis
- ✔ End-to-end RBI documentation
- ✔ Transparent and professional service
Disclaimer
This blog is intended for informational purposes only and does not constitute legal, financial, or regulatory advice. RBI rules and thresholds may change from time to time. Readers are advised to consult professionals or the Reserve Bank of India before making compliance decisions.
Conclusion
Core Investment Company registration plays a crucial role in regulating group investment companies in India. Understanding whether your company qualifies as a CIC—and whether registration is mandatory—helps avoid regulatory risks and ensures smooth financial structuring. Saving Mantra provides expert guidance to help companies stay compliant with RBI regulations.