The Reserve Bank of India (RBI) has granted Indiabulls Limited a Certificate of Registration as a Core Investment Company (CIC), bringing the company under the central bank's regulatory framework applicable to such investment-holding entities. According to reports from The Economic Times, The Hindu BusinessLine, and Lokmattimes.com, Indiabulls, formerly known as Yaari Digital Integrated Services Limited, disclosed the approval in a regulatory filing dated October 2. The company stated that the RBI has granted the certificate of registration as per the applicable provisions of the Reserve Bank of India Act, with the approval being formalized on October 3, 2026. As per Lokmattimes.com, the RBI has officially granted the certificate of registration to the company as a Core Investment Company.
A Core Investment Company is a type of non-banking financial company that primarily holds investments in, and provides funding to, companies within its own group rather than carrying out conventional lending or other financial businesses. As reported by The Economic Times, The Hindu BusinessLine, and Lokmattimes.com, under RBI norms, a CIC generally keeps at least 90 percent of its net assets in investments or loans to group companies, with at least 60 percent of net assets comprising equity investments in group companies. This registration essentially represents a regulatory classification of Indiabulls based on the nature of its investment-holding business, rather than an approval to begin a new consumer-facing banking or lending operation.
Indiabulls Limited has demonstrated strong financial momentum with TTM revenue of ₹1,101.21 crore and a net profit of ₹419.07 crore. The company maintains a healthy operating profit margin of 42.82% and achieved a massive year-on-year net profit growth of 5,516.29% in the latest quarter, reaching ₹142.99 crore. With a market capitalization of ₹6,863.68 crore and trading at ₹29.43 per share, the stock has delivered a one-year return of 65.24%. The company's valuation remains distinct within its industry, trading at a TTM P/E of 16.38x compared to the sector average of 39.98x. Institutional investors maintain a significant 17.19% stake in the company, with Foreign Institutional Investors holding 17.08% of equity.
According to the regulatory filing reported by The Economic Times, The Hindu BusinessLine, and Lokmattimes.com, Indiabulls indicated it might relinquish the certificate if deemed unsuitable under the CIC structure. The company clarified that this registration does not introduce any new banking or lending activities. Importantly, the filing contains an important qualification where Indiabulls stated that the certificate could subsequently be surrendered if the CIC framework is found not to apply to the company, which is being evaluated by the company itself. The company emphasized that "the said Certificate will be surrendered, in the event of its non-applicability, which is being evaluated by the Company," as reported by The Hindu BusinessLine and Lokmattimes.com. Management is actively reviewing whether the CIC framework aligns with its long-term operational interests or if surrendering it is more strategic.
The transition to a registered Core Investment Company provides Indiabulls Limited with a clear regulatory framework for managing its investments in subsidiaries. By operating as a CIC, the company can streamline its capital allocation across its digital and financial service verticals while adhering to specific RBI norms. This status is critical for holding companies that possess significant assets in group entities, ensuring they meet the required capital and leverage ratios. The move further stabilizes the corporate structure, providing clarity to stakeholders regarding the company's primary function as an investment and holding vehicle. The stock performance remains range-bound as markets await a definitive corporate resolution on the RBI status review, with the stock currently trading above its 200-day moving average of ₹19.76, reflecting sustained investor interest following its recent corporate restructuring.
