RBI asks CICs to take prior nod before overseas JV investments
MDT/PTI 07 December 2012

RBI has asked all core investment companies investing in joint ventures or subsidiaries or representative offices overseas in financial sector to obtain require prior approval from the central bank

 
Mumbai: The Reserve Bank of India (RBI) has said core investment companies (CICs) would require prior approval from the central bank for investing in joint ventures/subsidiaries or offices overseas in financial sector, reports PTI.
 
"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.
 
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.
 
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