Winning Bizness Desk

Mumbai. The Reserve Bank has approved Reliance Group's financial services provider company Jio Financial to become a core investment company (CIC). After this approval from the RBI, the way has been cleared for the transformation of Jio Insurance Premium from a non-banking financial company (NBFC) to a core investment company (CIC). Notably, after the separation of financial summary businesses from Reliance Industries, the shares of Jio Financial Summary were listed on 21 August 2023. The company has told that it was mandatory to enter from NBFC to core investment company as per the rules of the Central Bank. It had applied for conversion following the rules. Jio Finance's conversion into a CIC will help bring out the financial position and operations of all subsidiaries with more clarity. This will open up a path for better value realisation for investors.

CIC vs NBFC

Primarily, the working of a CIC is different from that of a normal NBFC. They are non-deposit technology insurance companies whose assets are invested primarily in equity, equity or debt in group companies. A CIC is a company with an asset size of more than ₹100 crore

What is CIC?

A Core Investment Company (CIC) is a specialized NBFC with an asset size of more than ₹100 crore. Based on the RBI circular dated 20 December 2016, the main function of a CIC is to acquire shares and securities with some interest. A CIC has to hold at least 90% of its net assets in the form of investments in shareholding, preference receipts, bonds, debentures, loans in group companies. All CICs with asset size above ₹100 crore are regulated by the laws of the Reserve Bank of India.