{"id":86340,"date":"2019-11-07T15:46:33","date_gmt":"2019-11-07T10:16:33","guid":{"rendered":"http:\/\/factly.forumias.com\/?p=11438"},"modified":"2019-11-07T15:46:33","modified_gmt":"2019-11-07T10:16:33","slug":"rbis-panel-suggests-measures-to-strengthen-core-investment-companies","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbis-panel-suggests-measures-to-strengthen-core-investment-companies\/","title":{"rendered":"RBI\u2019s panel suggests measures to strengthen core investment companies"},"content":{"rendered":"\n<p><strong>News:<\/strong>The Reserve Bank of India(RBI) panel to review the regulatory and Supervisory Framework for Core Investment Companies headed by Tapan Ray has submitted its report.<br><\/p>\n\n\n\n<p><strong>Facts:<\/strong><br><\/p>\n\n\n\n<p><strong>About CIC\u2019s:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Core Investment Companies (CICs) are Non-Banking Financial Companies(NBFCs) having asset size of Rs 100 crore and above.<\/li><li>The main business of CIC is of acquisition of shares and securities with certain conditions.<\/li><li>It holds not less than 90% of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies.<\/li><li>Further, investments in equity shares in group companies constitute not less than 60% of its net assets.&nbsp;<\/li><\/ul>\n\n\n\n<p><strong>Key Recommendations of the panel:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Every conglomerate with a CIC should have a Group Risk Management Committee.This committee should be responsible to monitor group-level leverage.&nbsp;<\/li><li>One-third of the board should comprise of independent members if the chairperson of the CIC is a non-executive member, otherwise at least half of the board should comprise of independent members.&nbsp;<\/li><li>Audit committee of the board should be chaired by an independent director who has oversight over the CIC\u2019s financial reporting process and policies.<\/li><li>The current threshold of Rs 100 crore asset size and access to public funds for registration as CIC should be retained.<\/li><li>There is a need for ring fencing boards of CICs by excluding employees or executive directors of group firms from its board.<\/li><li>The number of layers of CICs in a group should be restricted to two.As such,any CIC within a group shall not make investments through more than a total of two layers of CICs.The word layer means subsidiary or subsidiaries of the holding company.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News:The Reserve Bank of India(RBI) panel to review the regulatory and Supervisory Framework for Core Investment Companies headed by Tapan Ray has submitted its report. Facts: About CIC\u2019s: Core Investment Companies (CICs) are Non-Banking Financial Companies(NBFCs) having asset size of Rs 100 crore and above. The main business of CIC is of acquisition of shares&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rbis-panel-suggests-measures-to-strengthen-core-investment-companies\/\">Continue reading <span class=\"screen-reader-text\">RBI\u2019s panel suggests measures to strengthen core investment companies<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[3647,3919],"class_list":["post-86340","post","type-post","status-publish","format-standard","hentry","category-economy","tag-core-investment-companies","tag-tapan-ray","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700807310,"cached_date":1704722285},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=86340"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86340\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=86340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=86340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=86340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}