The Reserve Bank of India (RBI) on March 10, 2026, issued the Reserve Bank of India (Core Investment Companies) Amendment Directions, 2026, further to amend the Reserve Bank of India (Core Investment Companies) Directions, 2025.
The following has been amended:
• The amendment clarifies the components to be included while computing the “Owned Fund” of Core Investment Companies (CICs). Under the revised definition, owned funds will include paid-up equity capital, compulsorily convertible preference shares, free reserves (including quarterly profits), share premium, and capital reserves arising from asset sale proceeds, but will exclude revaluation reserves. From this amount, accumulated losses, intangible assets, and deferred revenue expenditure shall be deducted.
• The amendment also allows quarterly profits to be included in owned funds, provided that the financial statements are reviewed or audited quarterly by statutory auditors. The eligible profit shall be reduced by the average dividend paid in the last three financial years, calculated using a specified formula, and any losses during the current financial year shall be fully deducted from owned funds.
• Additionally, CICs are not required to deduct Right-of-Use (ROU) assets created under Ind AS 116 (Leases) from owned funds, provided the underlying leased asset is a tangible asset.
• The directions shall come into force with immediate effect.
[Notification no. - RBI/2025-26/229 DOR.CAP.REC.No.419/21.01.002/2025-26]
