Dr. K.P. Krishnan Headed Expert Committee:
Dr. K.P. Krishnan headed the expert committee on the Variable Capital Company has submitted its report on the feasibility of Variable Capital Companies in the International Financial Services Centres in India to the Chairperson of the International Financial Services Centres Authority (IFSCA), Shri. Injeti Srinivas.
- The IFSCA set up this Committee to explore the potential for allowing another legal structure – popularly known as a variable capital company (VCC) – as an additional option through which asset managers could pool the investors’ funds.
- The VCC structure dispenses with some of the key limitations of companies and LLPs and provides for higher regulatory standards than those applicable to trusts.
- The Committee assessed the features of a VCC or its equivalent, in other jurisdictions 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 that undertake fund management should provide certainty and clarity to investors.