K.P. Krishnan Expert Committee 

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.