Tapan Ray to head working group on CIC

Report likely to be ready by October end

MUMBAI: The Reserve Bank of India (RBI) has announced the Working Group to review the regulatory guidelines and supervisory framework to be applied for systematically important core investment companies (CIC).

The working group headed by Tapan Ray, the non-executive Chairman of Central Bank of India (CBI) and former Secretary, Ministry of Corporate Affairs, is expected to submit its report by October 31, 2019.

CIC are those companies, which have their assets predominantly as investments in shares for holding stake in group companies but not for trading, and hence also do not carry on any other financial activity.

As part of the statement on Developmental and Regulatory Policies issued along with the Second bimonthly Monetary Policy for the year 2019-120 on June 6, 2019, the RBI had stated about the need to form a working group to look into the key aspects of CIC framework

The other members of the working group are Lily Vadera, Executive Director, RBI; Amarjeet Singh, Executive Director, SEBI; T Rabishankar, Chief General Manager, Financial Markets Regulation Department, RBI; HK Jena, Deputy Managing Director, State Bank of India (SBI); and N S Venkatesh, Chief Executive, Association of Mutual Funds in India (AMFI).

The Terms of Reference of the Working Group include examining the current regulatory framework for CICs in terms of adequacy, efficacy and effectiveness of every component thereof and suggesting changes therein; assessing the appropriateness of and suggest changes to the current approach of the RBI towards registration of CICs including the practice of multiple CICs being allowed within a group, etc.

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