RBI simplifies CIC application form, prunes list of documents required

But it reserves the right to call for any further documentation beyond the mandated 18

The Reserve Bank of India (RBI) has reviewed the system of processing applications for registration as core investment companies (CICs), making it smoother and hassle free. It has amended the application form companies must fill out to register as CICs, making it more structured and aligned with the rules that govern such entities.

RBI has also reduced the number of documents an entity has to furnish along with the application form to register as a CIC from 52 to 18.

However, the central bank has reserved the right to call for any further documents beyond the 18 that the entity is mandated to furnish, in order to satisfy itself on the eligibility of the company seeking CIC registration.

“In the event of the Reserve Bank calling for further documents in addition to those mentioned in the list, the applicant company must respond within a stipulated time of one month”, RBI said in a statement on Monday.

A CIC is a non-banking financial company (NBFC) that carries on the business of acquisition of shares and securities and holds not less than 90 per cent of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies. Further investments in equity shares in group companies should constitute not less than 60 per cent of its net assets.

Among the documents the entity seeking registration as a CIC has to furnish are: Audited balance sheets and profit & loss accounts for the past three year, along with directors & auditors report, or for such shorter period as are available, business plan of the company for the next three years, and projected balance sheets.

Further, the entity has to submit credit bureau ratings of its directors of the company, board resolution to the effect that the company has not accepted/solicited any public deposit and will not accept the same in future without the prior approval of Reserve Bank of India in writing, among other things.