RBI's new rules put promoter holding firms under stricter watch
The Reserve Bank of India (RBI) has decided that promoter holding and investment companies now count as Core Investment Companies (CICs), even if most of their money comes from things like brand fees, royalties, or rent—not just finance.
This shift means these firms face tighter regulations, and many in the corporate world aren't happy about it.
Why does it matter?
With the new CIC tag, these companies must follow strict rules—like keeping 90% of their assets tied up in group companies and meeting tough financial benchmarks if they handle public funds.
Some experts worry the rules don't match how these businesses actually work.
As Moin Ladha puts it, clearer guidelines could help ease pushback from companies.
The RBI says these changes are meant to reduce risks where public money is involved, especially in complicated business groups.