Tapan Ray committee set up by RBI to review CIC

RBI has set up a committee to review the regulatory guidelines and supervisory framework of Core Investment Companies (CIC)

• Tapan Ray will be the chairman of the working group (of 6 members) who is presently Non-Executive Chairman of Central Bank of India and former Secretary of Ministry of Corporate Affairs

Terms of Reference of the committee:

• To examine the current regulatory framework for CIC and suggest changes therein
• Suggest changes to the current approach of the Reserve Bank of India towards registration of CIC
• To strengthen corporate governance and disclosure requirements for CIC
• For enhancing off-sight and on-site supervision over CIC
• The committee shall submit the report by October31, 2019

Core Investment Companies (CIC):

• CIC is a Non-Banking Financial Company (NBFC) that is indulged in the business of acquiring shares and securities
• The CIC holds not less than 90% of its net assets in the form of investment
• The investment is made in equity shares, preference shares, debentures, bonds, debt or loans in group companies
• The investments in the equity shares in group companies are not less than 60 per cent of its net assets

Question: 

Q.1 Who is the chairman of the committee set up by RBI to review the regulatory guidelines and supervisory framework of Core Investment Companies (CIC)?
a. Rakesh Mohan
b. Tapan Ray
c. Nandan Nilekani
d. U.K.Sinha

Q.2 The Core Investment Companies recently in the news, belong to which among the following?
a. Schedule Commercial Bank
b. Non-Banking Financial Company
c. Insurance Company
d. Foreign Investment company