Panel to review core investment companies

Why is it in the news?
  • The Reserve Bank of India constituted a working group to review regulatory guidelines and supervisory framework applicable to core investment companies (CICs).
More in the news
    • The panel will examine the current regulatory framework for CICs in terms of adequacy, efficacy and effectiveness of every component thereof and suggest changes.
    • It will also suggest measures to strengthen corporate governance and disclosure requirements for CICs.
    • It will also assess the adequacy of supervisory returns submitted by CICs and suggest changes.
    • Core Investment Company (CIC):
      (1) Core Investment Company (CIC) is a non-banking financial company carrying on the business of acquisition of shares and securities.
      (2) It holds not less than 90 per cent of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies.
      (3) Due to systemic implications on account of access to public funds, CICs having asset size of 100 crore or above are categorised as Systemically Important Core Investment Companies (CICs-ND-SI) and are required to obtain Certificate of Registration from the Reserve Bank.
    Source
    The Hindu.




    Posted by Jawwad Kazi on 4th Jul 2019
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