MUMBAI: Business groups will find it easier to structure their holdings below a holding company. The RBI has simplified the process of registration for a core investment company, reducing the documents to be submitted to 18 from 52.
Although holding companies, or core investment companies (CICs), as they are described by the RBI, perform the job of holding shares of group companies, they are classified as non-banking financial companies by the regulator. While this classification does not put a major burden in terms of capital requirements, their implications in terms of cost of compliance are huge.
Read More:- Rs 147.5 Debited From Your SBI A/c? Know Why Money Was Deducted From Your Savings A/c
“The RBI has undertaken a comprehensive review of the system of processing of applications for registration as CICs to make the process smoother and hassle free,” the central bank said.
Also Read– Your queries: Income Tax – Show PPF, gratuity proceeds in ITR
The documents that are required to be submitted include details of access to public funds, certificate of incorporation, memorandum of association, credit bureau report, copy of experience certificate, board resolution approving the application, board resolution stating that the company will not accept public deposits and another stating that it will not trade in its investments in shares and bonds.
