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

Updated Master Direction - Core Investment Companies (Reserve Bank) Directions, 2016 (Updated as on 11th October, 2024)

11-Oct-2024 | RBI/DoR(NBFC)/2016-17/39 Master Direction DoR(NBFC).PD.003/03.10.119/2016-17

Reserve Bank of India (RBI) has issued the updated Master Direction - Core Investment Companies (Reserve Bank) Directions, 2016, effective from 11th October 2024. Key updates include: a. Section III-A: Upper Layer Regulations for CICs New regulatory guidelines for Core Investment Companies (CICs) classified within the Upper Layer based on size, activity, and risk. b. Section III-B: Top Layer Regulations for CICs Establishes provisions applicable to CICs in the Top Layer. c. Annex VIII-A: Compensation Guidelines Introduces guidelines on compensation for Key Managerial Personnel (KMPs) and Senior Management to align incentives with risk management objectives. d. Para 2A: Scale-Based Regulatory Structure for NBFCs The NBFC regulatory framework is structured into four layers: i. NBFC - Base Layer (BL) ii. NBFC - Middle Layer (ML) iii. NBFC - Upper Layer (UL) iv. NBFC - Top Layer (TL), expected to remain unfilled. CICs will be classified into either the Middle Layer or Upper Layer, depending on their scale and risk. e. Para 26A: Investments in Alternative Investment Funds (AIFs) Introduces specific requirements for CICs' investments in AIFs to align with regulatory expectations. For detailed information, please refer to the attached document.

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