Tapan Ray RBI committee to strengthen Core Investment Companies (CIC) framework

The Reserve Bank of India (RBI) has constituted a 6-member committee, under the chairmanship of former secretary of MCA Tapan Ray, to strengthen the corporate governance framework of systematically important Core Investment Companies (CICs). These are Non-Banking Financial Companies (NBFCs) which have their assets predominantly as investments in shares for holding stake in group companies but not for trading. CICs also do not carry out any other financial activity. The committee report is to be submitted by October 31, 2019. The working group will examine regulatory framework, enhance onsite and offsite surveillance of these companies, suggest changes in registration criteria including the practice of multiple CIC within a group and other such assessment to strengthen the corporate governance framework. The committee report is to be submitted by October 31, 2019.