Religare Enterprises Ltd has said that the central bank has issued certificate of registration permitting it to carry on the business as a core investment company-non-deposit taking-systemically important (CIC-ND-SI).
The company on Wednesday intimated the BSE about receipt of permission to carry on the business of CIC-ND-SI.
A CIC-ND-SI, among others, is a non-banking financial company (NBFC) with asset size of Rs 100 crore and above; is in the business of acquisition of shares and securities; holds not less than 90 per cent of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies;
Further, the NBFC’s investments in equity shares (including instruments compulsorily convertible into equity shares within a period not exceeding 10 years from the date of issue) in group companies should constitute not less than 60 per cent of its net assets; and 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.
The NBFC cannot carry on any other financial activity except investment in bank deposits, money market instruments, government securities, loans to and investments in debt issuances of group companies or guarantees issued on behalf of group companies.
Shares of Religare Enterprises were trading at Rs 348.70 per share, down 0.87 per cent on the BSE at 2.45 p.m. local time.