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Current Affairs

Tapan Ray committee to review core investment companies’ supervision

Date: 04 July 2019 Tags: Banking Committees

The Reserve Bank of India (RBI) has constituted six-member committee (working group) to review regulatory guidelines and supervisory framework applicable to core investment companies (CICs). It will be headed by Tapan Ray, non-executive Chairman, Central Bank of India and former Secretary, Ministry of Corporate Affairs.

Mandate of Committee

  • It will examine current regulatory framework for CICs in terms of efficacy, adequacy and effectiveness of every component thereof and suggest changes.
  • It will assess appropriateness of current approach of RBI towards registration of CICs, including practice of multiple CICs being allowed within group and suggest changes.
  • It will also suggest measures to strengthen corporate governance and disclosure requirements for CICs. It will assess the adequacy of supervisory returns submitted by CICs and suggest changes.


In 2010, RBI had introduced separate framework for regulation of systemically important CICs recognising difference in business model of holding company relative to other non-banking financial companies. Over the years, corporate group structures have become more complex involving multiple layering and leveraging, which has led to greater inter-connectedness with financial system through their access to public funds. Further, in light of recent developments, there is need to strengthen the corporate governance framework of CICs. Troubled financial conglomerate Infrastructure Leasing and Financial Services (IL&FS) is registered with the RBI as a CIC.