Core Investment Company is a type of NBFC which hold shares, bonds and debentures but are not allowed to trade in any of the instruments they hold.

Key features of the company are :

  • At least 90% of its total assets should be in form of investment of any of the listed i.e. equity shares, preference shares, debentures, debt or loan in the group.
  • At least 60% of its net assets should be in form of investment in the equity shares as on the date of last audited balance sheet.
  • It should not trade in its own investment in form of shares, bonds, debentures or debt or loan in its own group companies, except through block safe for dilution or disinvestment
  • It carry out any activity mentioned in section 45-1(C) and 45-1(F) of the RBI Act, except investing in-
    – Bank Deposits
    – Money Market Instruments
    – Government Securities
    – Guarantees Issued on behalf of Group Companies
    – Bonds or Debentures issued by Group Companies /Loans to Group Companies

What are types of Core Investment Company?

Basically any Core Investment Company can be categorized in one of the below mentioned types: