The Reserve Bank of India has issued the Reserve Bank of India (Core Investment Companies) Amendment Directions, 2026, effective immediately, amending the Reserve Bank of India (Core Investment Companies) Directions, 2025 to clarify the components included in the computation of “Owned Funds” for Core Investment Companies (CICs). The amendment permits free reserves to include quarterly profits, subject to quarterly financial statements being subjected to limited review/audit by statutory auditors, and such profits being adjusted for the average dividend paid during the last three financial years using the prescribed formula. It also mandates that losses in the current financial year be fully deducted from Owned Funds. Further, CICs are not required to deduct Right-of-Use (ROU) assets created under Ind AS 116 – Leases from Owned Funds where the underlying leased asset is a tangible asset.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13314&Mode=0
