TAPAN RAY WORKING GROUP

About:

• The working group was chaired by Tapan Ray, former Secretary, Ministry of Corporate Affairs.
  
  
• The key recommendations of the WG are as follows:
  • Capital contribution by a CIC in a step-down CIC, over and above 10% of its owned funds, should be deducted from its Adjusted Networth, as applicable to other NBFCs. Further, step-down CICs may not be permitted to invest in any other CIC.
    
    
  • The number of layers of CICs in a group should be restricted to two.
    
    
  • Every Group having a CIC should have a Group Risk Management Committee (GRMC).
    
    
  • Constitution of the Board level committees viz., Audit Committee and Nomination and Remuneration Committee should be mandated.
    
    
  • Offsite returns may be designed by the RBI and may be prescribed for the CICs on the lines of other NBFCs.
    
    
  • Onsite inspection of CICs maybe conducted periodically.