Take prior nod before overseas JV investments: RBI to CICs

MUMBAI: The Reserve Bank today said core investment companies (CICs) would require prior approval from the RBI for investing in joint ventures/subsidiaries or offices overseas in financial sector.

"All CICs investing in joint ventures or subsidiaries or representative offices overseas in financial sector will require prior approval from the Bank," RBI said in a release.

Core Investment Companies (CICs) are those companies that invest primarily in group companies in different sectors of the economy.

As holding companies they need to invest in both financial and non-financial activities.

"It has therefore been decided to issue a separate set of directions to CICs with regard to their overseas investments," RBI said.

RBI said the CICs currently exempted from registration and desirous to make overseas investments in financial sectors would require a certificate of registration from RBI and would have to comply with all the regulations pertaining to this.

However exempted CICs do not require to be registered with RBI for making investments in non-financial sector, it added further.