Jio Financials Becomes Core Investment Company After RBI’s Nod

Jio Financial Services has received the approval of the Reserve Bank of India (RBI) to convert into a Core Investment Company (CIC) from a Non-Banking Financial Company (NBFC). With this, Jio Financials will now be able to focus on the management of its subsidiary companies along with the investments.  The transformation to the CIC structure would also enable it to delineate the financials and operations of each subsidiary. 

The company issued an official statement on Thursday stating, “Further to the disclosure dated 21 November 2023, the company has today received from the Reserve Bank of India approval for conversion of the company from Non-Banking Financial Company to Core Investment Company.”

According to RBI, a CIC is a specialised NBFC with a minimum asset size of Rs 100 crore. The RBI’s circular dated 20 December 2016 stated that a CIC’s main business is the acquisition of shares and securities with certain conditions. 

The central bank requires one condition that a CIC holds not less than 90 per cent of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debts or loans in group companies. 

A company gains greater operational flexibility as a CIC as they can focus on core investment activities without engaging in other financial services. Unlike typical NBFCs, CICs are non-deposit taking financial companies that have their assets predominantly invested in the equity shares, preference shares, or debt instruments of their group companies. (ANI)