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.