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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Reserve Bank of India (Core Investment Companies) Directions, 2025

28-Nov-2025 | RBI/DOR/2025-26/367 DOR.FIN.REC.No.297/03-10-119/2025-26

RBI has issued Reserve Bank of India (Core Investment Companies) Directions, 2025 effective from 28th November 2025. Key Highlights: 1. Applicability - Applicable to all Core Investment Companies (CICs). 2. Board Responsibilities - CICs must have Board-approved policies for capital planning (ICAAP), investments, and resource planning. These policies must be reviewed periodically. 3. Registration Requirements - CICs must apply for RBI registration through the PRAVAAH portal within three months of becoming a CIC. Certain small or non-public-fund CICs need not register but must avoid accessing public funds without approval. 4. Group Structure Restrictions - A CIC can have only two layers of CICs within a group. Any investment by one CIC into another creates a new layer, and exceeding two layers is not allowed. 5. Capital Requirements - CICs must maintain an Adjusted Net Worth (ANW) of at least 30% of their risk-weighted assets and ensure that total outside liabilities do not exceed 2.5 times the ANW. 6. Risk Management Requirements - CICs must appoint a Chief Risk Officer (CRO) and form a Risk Management Committee. 7. Reporting & Consolidation - CICs must comply with all RBI reporting formats and prepare consolidated financial statements (CFS). Entities not included in consolidation must still be disclosed as per RBI-prescribed formats. For more information, please refer to the attached document.

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