What is Systemically Important Core Investment Company?

Question of The Day31-08-2022

Which of the following statement(s) is/are not true regarding Systemically Important Core Investment Company?

I. It is a NBFC with asset size of Rs. 300 crore and above.

II. It holds not less than 90% of its net assets in the form of investment in equity shares, bonds, debt, etc. in group companies.

III. It accepts public funds.

Select the correct code:

Answer

Correct Answer : a ) I only

Explanation :

According to RBI, a Systemically Important Core Investment Company(CIC-ND-SI) is a Non-Banking Financial Company

(i) with asset size of Rs 100 crore and above

(ii) It holds not less than 90% of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies;

(iii) Its investments in the equity shares in group companies constitutes not less than 60% of its net assets

(iv) It does not trade in its investments in shares, bonds, debentures, debt or loans in group companies except through block sale for the purpose of dilution or disinvestment;

(v) It accepts public funds.

Hence, option (A) is correct.

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