UPSC Articles
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).
- It has submitted its report on the feasibility of Variable Capital Companies in the International Financial Services Centres in India.
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.
