In a recent press release, the Reserve Bank of India (RBI) announced the simplification of the application process for registration of Core Investment Companies (CICs). This move is aimed at making the registration process smoother, user-friendly, and hassle-free for applicants.
Revamped Application Form and Reduced Documentation
The RBI has revamped the application form, aligning it with extant CIC regulations, and reduced the number of documents required for submission. Previously, applicants had to submit 52 documents; now, they only need to submit 18.
Revised Application Form and Indicative Document List
The revised application form, along with an indicative list of documents and information to be submitted, is available on the RBI website. This list is not exhaustive, and the RBI may request additional documents to ensure the applicant’s eligibility for CIC registration. Applicants must respond within one month if the RBI asks for further documentation.
18 Documents/Information Required for CIC Registration
The indicative list of 18 documents/information required for obtaining a Certificate of Registration (CoR) as a Core Investment Company (CIC) includes:
1. Details of access to public funds;
2. Certified copy of the company’s Certificate of Incorporation;
3. Certified copy of the main object clause in the MoA related to financial business;
4. Credit Bureau Report for company directors;
5. Experience certificate in the financial services sector for directors/promoters, if any;
6. Board Resolution approving application submission and authorizing signatory;
7. Board Resolution stating the company has not accepted/solicited public deposits and will not do so without RBI approval;
8. Board Resolution stating the company will not trade its investments in shares, bonds, debentures, debt, or loans in group companies except for block sales;
9. Board Resolution stating the company does not carry on any other financial activity referred to in Section 45I(c) and 45I(f) of the RBI Act, 1934, except specific activities;
10. Statutory Auditor’s Certificate certifying the Average Market Price of quoted investments;
11. Statutory Auditor’s Certificate certifying the number of CICs in the group;
12. Statutory Auditor’s Certificate certifying the company’s net asset size and investment in group companies as a percentage of its net assets;
13. Statutory Auditor’s Certificate certifying investments in equity shares in group companies as a percentage of its net assets;
14. Certificate from Statutory Auditor/s providing details of companies in the group;
15. Last three years’ audited Balance Sheet and Profit & Loss Account, directors & auditors report or such shorter period as available;
16. Business plan for the next three years, including projected Balance Sheets;
17. Time-bound plan for adherence to minimum Capital Ratio and Leverage Ratio requirements, if applicable; and
18. Time-bound action plan for achieving 90% of net assets under investments, if applicable
Note: The list is indicative and not exhaustive. The RBI may request additional documents to ensure eligibility for CIC registration. Applicants must respond within one month if the RBI asks for further documentation.
This new streamlined process demonstrates the RBI’s commitment to improving the ease of doing business in the financial sector and supporting the growth of Core Investment Companies.
RBI simplifies the application process for registration of Core Investment Companies (CICs): Press Release dated April 10, 2023