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K.P. Krishnan Expert Committee 

  • IASbaba
  • June 5, 2021
  • 0
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K.P. Krishnan Expert Committee 

Part of: GS Prelims and GS-III – Economy

In news

  • Dr. K.P. Krishnan headed the expert committee on Variable Capital Company (VCC).

Why was the committee set up?

  • The IFSCA set up this Committee to explore the potential for allowing another legal structure, popularly known as a VCC, as an additional option through which asset managers could pool the investors’ funds.
    • The VCC structure removes some of the key limitations of companies.
    • It provides for higher regulatory standards than those applicable to trusts.

Report of the committee

  • The Committee assessed the features of a VCC or its equivalent, in other countries such as the UK, Singapore, Ireland and Luxembourg. 
  • The Committee recommended the adoption of a VCC-like legal structure for the purpose of conducting fund management activity in IFSCs
  • The Committee recognized that the legal framework governing entities should provide certainty and clarity to investors. 

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