RBI Eases Rules for Holding Investment Company Registration
RBI Eases Rules for Holding Investment Company Registration
It will now be simpler for business groups to structure their holdings under a holding company, thanks to recent changes by the Reserve Bank of India (RBI). The registration process for a core investment company has been streamlined, resulting in a reduction in the number of documents required from 52 to 18.
The RBI categorises holding companies, or core investment companies (CICs), as non-banking financial companies, despite their primary function being the holding of shares in group companies. While this classification does not impose significant capital requirements, complying with the associated costs of regulations is a major concern.
According to the RBI, it has conducted a thorough evaluation of the procedure for processing registration applications as CICs to improve efficiency and reduce difficulties.
The necessary documents for submission include a credit bureau report, a certificate of incorporation, a memorandum of association, proof of access to public funds, a copy of an experience certificate, as well as board resolutions approving the application, stating that the company will not take public deposits, and indicating that it will not trade its investments in shares and bonds.
