Core investment companies can have only two layers, says RBI

In revised guidelines, regulator says entities have time till March 2023 to reorganise their biz structure

The Reserve Bank of India (RBI), in its revised guidelines for core investment companies (CICs), has said the number of layers of CICs within a group, including the parent, will be not be more than two.

This is irrespective of the extent of direct or indirect control a CIC exercises in another. 

“If a CIC makes any direct/indirect equity investment in another CIC, it will be deemed as a layer for the investing CIC,” the RBI said.

While the revised regulations will come into effect immediately, the existing entities will have time till March 2023 to reorganise their business structure. 

The revised guidelines are