BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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granting of loans to group companies
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investment in bank deposits
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issuing guarantees on behalf of group companies
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all of the above
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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: -Core Investment Company (CIC) are specialized Non-Banking Financial Companies that need to undergo NBFC registration with the RBI. These CICs, which have an asset size of ₹100 crore and above, carry on the business of acquisition of shares and securities, subject to certain conditions.
Detailed explanation-3: -To facilitate and encourage the creation, issue or conversion of debentures, debenture stock, bonds, obligation, shares, stocks, and securities, and to act as trustees in connection with any such securities, and to take part in the conversion of business concerns and undertakings into companies. 2.
Detailed explanation-4: -Benefits of Forming a Core Investment Company By forming this company; the entity can carry out different forms of investments in shares, equity, loans and other forms of instruments. By complying with the norms related to RBI this form of company would be established.