Core Investment Company Registration — RBI Rules for Group Holding Companies
Core investment company registration is required when a group holding company has assets of ₹100 crore or more and raises or holds public funds. A CIC is an NBFC that mainly holds shares and loans in group companies. Under the RBI Directions of 28 November 2025 you apply within three months of becoming a CIC.
What it is
A core investment company (CIC) is a non-banking financial company that does one main thing: it holds investments in its own group. Typically a promoter family or corporate group parks its shareholdings in a holding company, and that company is a CIC if it passes the RBI tests. It does not accept public deposits or trade in its shares.
The governing text is the Reserve Bank of India (Core Investment Companies) Directions, 2025, dated 28 November 2025, read with the Scale Based Regulation framework. A CIC with assets of ₹100 crore or more that accesses public funds must register with the RBI; smaller ones, or larger ones that do not use public funds, can stay unregistered. If your holding company fails the tests, it is treated as an ordinary NBFC. See NBFC registration for that path.
Consider a Faridabad manufacturing family that holds its operating companies through one holding company and borrows from banks against the shares. At first the balance sheet is small and nothing is needed. Once it reaches ₹100 crore, core investment company registration becomes a three-month task, and the bank borrowing is what puts it in scope.
Who it applies to
Promoter group holding companies
The company that holds the group’s shares in its operating companies is the classic CIC, especially if it borrows against them or issues debentures or commercial paper.
Groups crossing ₹100 crore
Once total assets reach ₹100 crore, individually or aggregated within the group, and public funds are used, the registration clock starts.
Unregistered CICs checking their status
If assets are below ₹100 crore, or ₹100 crore and above without public funds, you may remain unregistered. A change in borrowing pattern can bring you back into scope.
Why it matters
Registration is mandatory above the line
A CIC that crosses ₹100 crore and uses public funds without registering is in breach. Public funds include public deposits, inter-corporate deposits, bank finance and funds raised through debentures or commercial paper.
It organises group borrowing
A registered CIC borrows within a framework lenders already understand, so group funding is easier to explain than it is for an unregulated holding company.
It shapes group structure
The two-layer limit on CICs, the group asset tests and the capital rules all influence how a group arranges its holdings. Plan before you cross the line, not after.
Documents required
Company papers
- Certificate of incorporation, MOA and AOA
- PAN and GST details
- Latest audited balance sheet
- List of directors with DIN
Group and asset papers
- List of group companies and shareholding
- Statement showing the 90% and 60% net asset tests
- Details of borrowings and public funds used
Governance papers
- Board-approved investment and resource planning policies
- Fit and proper declarations for directors
- Auditor’s certificate on the tests where required
How it works
Run the tests
We work through four tests on your last audited balance sheet: asset size, 90% net assets, 60% equity and no trading. Then we check whether you have used public funds.
Fix gaps before you apply
If the numbers fall short, we advise on fixes. These can be moving holdings or adjusting borrowing, so that the company qualifies cleanly.
Apply on the PRAVAAH portal
We prepare and file the application with the RBI within the three-month window, upload the documents and reply to RBI queries.
Set up CIC compliance
After registration, the work continues. We help you track the capital ratios, board policies, returns and the quarterly statement to the RBI.
Timelines
Application window
Within three months of becoming a CIC, that is, of reaching the ₹100 crore balance sheet size with public funds.
Capital tests
Adjusted net worth must be at least 30% of risk-weighted assets at all times; outside liabilities must not exceed 2.5 times adjusted net worth.
Ongoing reporting
A quarterly deviations statement certified by the CEO and CFO, and consolidated financial statements under the Companies Act, 2013.
How a CIC differs from a normal NBFC
| Point | Core investment company | Other NBFC |
|---|---|---|
| Main business | Holds shares and loans in group companies | Lends, finances or invests for customers |
| Asset tests | 90% of net assets in group investments or loans; 60% in group equity | Financial assets and income above 50% each |
| Registration | Only at ₹100 crore with public funds | Generally required for the business |
| Public deposits | Not allowed | Only specific NBFC-D |
What happens if you miss it
Treated as an NBFC
A company failing the CIC conditions must register as an ordinary NBFC and meet its prudential norms.
Operating without registration
A CIC above ₹100 crore with public funds that does not register is in breach of the RBI Act and can face action from the RBI.
Breach of capital limits
Falling below 30% adjusted net worth to risk-weighted assets, or crossing 2.5 times outside liabilities, is a prudential breach reportable to the RBI.
Frequently asked questions
What is a core investment company?
A CIC is an NBFC whose business is holding shares and securities of its own group. It must keep at least 90% of net assets in group company investments or loans, at least 60% in group equity and units of InvITs, and must not trade in its investments except block sales for dilution. We test your numbers against these conditions.
When must a CIC register with the RBI?
A CIC must register when its total assets are ₹100 crore or more, individually or aggregated within the group, and it raises or holds public funds. Below ₹100 crore, or at ₹100 crore and above without public funds, it can stay unregistered. The application goes through the PRAVAAH portal within three months.
Which funds count as public funds?
Public deposits, inter-corporate deposits, bank finance, and all funds received directly or indirectly from outside sources, such as debentures or commercial paper. So bank borrowing alone makes a holding company use public funds. We map your funding to see whether you are inside or outside the registration net.
What is the capital requirement for a CIC?
Adjusted net worth must never fall below 30% of aggregate risk-weighted assets, and outside liabilities must not exceed 2.5 times adjusted net worth. Adjusted net worth is owned funds plus 50% of unrealised appreciation in quoted investments, less certain excess contributions. We model your ratios before you apply.
Can a CIC accept public deposits?
No. A CIC cannot accept public deposits, and it cannot trade in securities except through block sales. It also cannot enter commodity derivative contracts. If your group needs to raise deposits, a different NBFC structure is needed. We can compare the options for you.
How many layers can a CIC group have?
The Directions limit CIC layers to two at most. A CIC can hold another CIC, but a longer chain is restricted. This affects how groups arrange intermediate holding companies. We review your current holding chain and suggest changes before you apply.
What does the RBI require after registration?
A CIC sits in the Middle or Upper Layer of the Scale Based Regulation. In practice it needs board-approved investment and resource planning policies, a Chief Risk Officer, fit and proper directors, a Group Risk Management Committee, a quarterly deviations statement and consolidated financial statements. We set up the calendar.
What if my company fails the tests?
It is treated as an ordinary NBFC and must register as one and meet its prudential norms, if it carries on NBFC business. You can sometimes restructure holdings to qualify as a CIC instead. We run both routes on your numbers so you can see which suits your group better.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
Ready to begin?
Share your group chart and last balance sheet, and we will tell you whether you are a CIC and when to apply.