BANKING AFFAIRS

Detailed explanation-1: -A Core Investment Company (CIC) is a Non-Banking Financial Company (NBFC) which carries on the business of acquisition of shares and securities and holds not less than 90% of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies.

Detailed explanation-2: -Stockbroking, Merchant banking NBFCs are regulated by SEBI. RBI is the regulator of those NBFC which deal in lending, accepting deposits, financial leasing. Nidhi and Chitfund companies are regulated by the Department of Company Affairs. Housing Finance Companies are regulated by RBI.

Detailed explanation-3: -Core Investment Company can be classified into two categories: CIC-ND-Non Systemically Important (NSI) and CIC-ND-Systemically Important (SI). Non-Systemically Important CIC (NSI): It is a non-deposit taking CIC which has an asset size of less than Rs.

Detailed explanation-4: -Core Investment Companies with asset size of less than ₹ 100 crore, and those with asset size of ₹ 100 crore and above but not accessing public funds are exempted from registration with the RBI. 10. What are the different types/categories of NBFCs registered with RBI?

Detailed explanation-5: -A company has investments in Group companies but does not meet the criteria of principal business as defined in terms of asset-income criteria to be as an NBFC. Can the company still be registered as a CIC or does it need to first register as an NBFC? Ans: CICs need not meet the principal business criteria for NBFCs.