Overview
Investment holding companies, family investment entities and other investment vehicles have their own accounting, tax and regulatory questions: classification and valuation of investments, RBI registration thresholds, FEMA reporting for foreign investment, and investor reporting.
Getting these right avoids unintended regulatory status, incorrect tax treatment and gaps in disclosures.
Who needs this service
Legal and regulatory framework
- Companies Act, 2013 and applicable accounting standards
- RBI directions for NBFCs and Core Investment Companies
- FEMA, 1999 and related regulations
- Income-tax law on investment income and capital gains
Scope of services
Accounting and reporting
- Classification and valuation of investments
- Financial statements and investor reports
- NAV computation support
Regulatory
- Evaluation of NBFC / CIC registration requirements under RBI directions
- FEMA reporting for inbound and outbound investment
- Board and trustee reporting packs
Tax
- Tax on dividends, interest and capital gains
- Advance tax and return filing
How the engagement works
- Structure reviewEntity type, investments and funding.
- Regulatory mappingApplicable RBI, FEMA and company law requirements.
- ReportingPeriodic accounts and reports.
- ComplianceFilings and certifications.
Documents typically required
Key forms and due dates
| Item | Timeline |
|---|---|
| FLA return | 15 July (where applicable) |
| Financial statements | AOC-4 within 30 days of the AGM |
Deliverables
- Financial statements and investor reports
- Regulatory applicability notes
- FEMA filings
The scope of each engagement is agreed in writing and depends on the nature, size and regulatory requirements of the entity.
Frequently asked questions
Does an investment company need RBI registration?
It depends on the nature and size of its assets and income and whether it accesses public funds. Core Investment Companies have separate thresholds. Each case needs a review of the RBI directions.
How are investments valued in the accounts?
As per the applicable framework: cost or fair value under AS, and the Ind AS 109 classification for Ind AS companies.