The Reserve Bank of India (RBI) on Friday has issued guidelines for Core Investment Companies (CIC). RBI has decided to revise the guidelines applicable for Core Investment Companies after receiving suggestions and comments from the stakeholders.
The Adjusted Net Worth (ANW) represents direct or indirect capital contribution made by one CIC to another CIC. In case the ANW is more than 10% of the owned funds, the CIC shall be deducted.
With the investment of one CIC to another CIC, the involvement has been restricted to two CIC’s forming a group structure. All the existing entities shall reorganise their group structure and adhere to these guidelines as of March 31, 2023.
The parent CIC in the group or the CIC with the largest asset size, in case there is no identifiable parent CIC in the group, shall constitute a Group Risk Management Committee (GRMC). The GRMC shall report to the Board of the CIC that constitutes it and shall meet at least once in a quarter.