New Delhi [India], October 3 (ANI): The Reserve Bank of India (RBI) has granted Indiabulls Limited a Certificate of Registration as a Core Investment Company (CIC), bringing the company under the central bank’s regulatory framework applicable to such investment-holding entities.
Indiabulls, formerly known as Yaari Digital Integrated Services Limited, disclosed the approval in a regulatory filing dated October 2.
“The Reserve Bank of India has granted a certificate of Registration to the Company as a Core Investment Company as per the applicable provisions of the Reserve Bank of India Act,” the company said in the filing.
A Core Investment Company is a type of non-banking financial company that primarily holds investments in, and provides funding to, companies within its own group rather than carrying out conventional lending or other financial businesses.
Under RBI norms, a CIC generally keeps at least 90 per cent of its net assets in investments or loans to group companies, with at least 60 per cent of net assets comprising equity investments in group companies.
The registration is therefore essentially a regulatory classification of Indiabulls based on the nature of its investment-holding business, rather than an approval to begin a new consumer-facing banking or lending operation.
The filing, however, contains an important qualification. Indiabulls said the certificate could subsequently be surrendered if the CIC framework is found not to apply to the company.
“However, the said Certificate will be surrendered, in the event of its non-applicability, which is being evaluated by the Company,” it said.
The company did not disclose any immediate financial impact from the RBI registration. In its regulatory disclosure, it stated that it had been registered as a Core Investment Company, while marking the period of validity as “not applicable”. (ANI)
RBI grants Core Investment Company registration to Indiabulls
