Overseas Investments by CICs

Core Investment Companies (CICs) invest primarily in group companies, in different sectors of the economy. Being holding companies they need to invest in both financial and non-financial activities. The RBI has therefore decided to issue a separate set of directions to CICs with regard to their overseas investments. 

 

Accordingly, all CICs investing in joint ventures/subsidiaries/representative offices overseas in financial sector will require prior approval from the RBI. This approval will be subject to the CIC fulfilling the conditions enumerated in the newly promulgated directions issued by RBI. Should CICs currently exempted from registration, desire to make overseas investments in financial sector, they would require a certificate of registration from RBI and shall have to comply with all the regulations applicable to registered CICs. However exempted CICs do not require to be registered with RBI for making investments in non-financial sector.