The Reserve Bank of India (RBI) on Thursday said core investment companies (CICs) would require prior approval from the RBI for investing in joint ventures/subsidiaries or offices overseas in the financial sector.

“All CICs investing in joint ventures or subsidiaries or representative offices overseas in the financial sector will require prior approval from the bank,” the RBI said in a release. CICs are those companies that invest primarily in group companies in different sectors of the economy.“It has, therefore, been decided to issue a separate set of directions to CICs with regard to their overseas investments,” the RBI said.

The CICs, now exempted from registration and desirous to make overseas investments in financial sectors, would require a certificate of registration from the RBI and would have to comply with all the regulations pertaining to this, the apex bank said. However, exempted CICs do not require to be registered with the RBI for making investments in non-financial sector, it added. — PTI