The Reserve Bank of India has granted Indiabulls Limited a Certificate of Registration as a Core Investment Company (CIC), placing the firm under the central bank's regulatory framework for investment-holding entities.
What the approval means
Indiabulls, formerly known as Yaari Digital Integrated Services Limited, disclosed the approval in a regulatory filing dated October 2. A Core Investment Company is a type of non-banking financial company that primarily holds investments in, and provides funding to, companies within its own group rather than carrying out conventional lending or other financial businesses.
Under RBI norms, a CIC generally keeps at least 90 per cent of its net assets in investments or loans to group companies, with at least 60 per cent of net assets comprising equity investments in group companies. The registration is essentially a regulatory classification of Indiabulls based on the nature of its investment-holding business, rather than an approval to begin a new consumer-facing banking or lending operation.
A notable caveat
The filing contains an important qualification: Indiabulls said the certificate could subsequently be surrendered if the CIC framework is found not to apply to the company, a matter the company said it was still evaluating. The company did not disclose any immediate financial impact from the registration.
Sources: RBI grants Core Investment Company registration to Indiabulls
What the approval means
Indiabulls, formerly known as Yaari Digital Integrated Services Limited, disclosed the approval in a regulatory filing dated October 2. A Core Investment Company is a type of non-banking financial company that primarily holds investments in, and provides funding to, companies within its own group rather than carrying out conventional lending or other financial businesses.
Under RBI norms, a CIC generally keeps at least 90 per cent of its net assets in investments or loans to group companies, with at least 60 per cent of net assets comprising equity investments in group companies. The registration is essentially a regulatory classification of Indiabulls based on the nature of its investment-holding business, rather than an approval to begin a new consumer-facing banking or lending operation.
A notable caveat
The filing contains an important qualification: Indiabulls said the certificate could subsequently be surrendered if the CIC framework is found not to apply to the company, a matter the company said it was still evaluating. The company did not disclose any immediate financial impact from the registration.
Sources: RBI grants Core Investment Company registration to Indiabulls
