RBI grants Core Investment Company registration to Indiabulls

“The Reserve Bank of India has granted a certificate of Registration to the Company as a Core Investment Company as per the applicable provisions of the Reserve Bank of India Act,” the company said in the filing.

A Core Investment Company is a type of non-banking financial company that primarily holds investments in, and provides funding to, companies within its own group rather than carrying out conventional lending or other financial businesses.

The registration is therefore essentially a regulatory classification of Indiabulls based on the nature of its investment-holding business, rather than an approval to begin a new consumer-facing banking or lending operation.

The filing, however, contains an important qualification. Indiabulls said the certificate could subsequently be surrendered if the CIC framework is found not to apply to the company.

“However, the said Certificate will be surrendered, in the event of its non-applicability, which is being evaluated by the Company,” it said.

The company did not disclose any immediate financial impact from the RBI registration. In its regulatory disclosure, it stated that it had been registered as a Core Investment Company, while marking the period of validity as “not applicable”. (ANI)

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