CAPF AC 2021 Q119: Current Affairs – Indian Government Schemes & Initiatives
- (a) K. P. Krishnan
- (b) Ketan Dalal
- (c) J. Ranganayakulu
- (d) Bobby Parikh
Answer: (a) K. P. Krishnan
Explanation
Expert Committee on Variable Capital Company
How to think: this committee was set up by the International Financial Services Centres Authority (IFSCA).
It was chaired by Dr K. P. Krishnan, a former Secretary to the Government of India.
It gave its report in May 2021.
| Fact | Detail |
|---|---|
| Set up by | IFSCA, the regulator of GIFT City IFSC |
| Chairman | K. P. Krishnan |
| Task | To see whether the Variable Capital Company (VCC) structure suits fund management in the IFSC |
| Finding | Recommended adopting a VCC-like structure |
What a VCC is: a company whose share capital can change as investors come in and go out.
It can hold several sub-funds with separate assets.
Singapore, Ireland and Luxembourg use this form for investment funds.
Answer: (a) K. P. Krishnan.
Why each option is right or wrong
- (a) CORRECT. K. P. Krishnan headed the IFSCA committee on Variable Capital Companies.
- (b) Incorrect. Ketan Dalal was a member of the committee, not its head.
- (c) Incorrect. J. Ranganayakulu is linked with the insolvency and securities regulators, not this chair.
- (d) Incorrect. Bobby Parikh is a tax expert and was not the chairman.
Key point
IFSCA: unified regulator for International Financial Services Centres, set up in 2020, headquartered at GIFT City, Gandhinagar. K. P. Krishnan committee (2021): Variable Capital Company for fund management in the IFSC.
Remember
Variable Capital Company committee: K. P. Krishnan, IFSCA, 2021.
Common mistakes
- Marking a member of the committee instead of its chairman.
- Thinking the committee was set up by SEBI or the RBI; it was the IFSCA.
- Confusing a Variable Capital Company with a venture capital company.
Exam tip
Educated guess: finance committees are usually headed by a senior former civil servant. Dr K. P. Krishnan, a former Secretary, is the best-known name of that kind among the options.
Sources
- International Financial Services Centres Authority — Report of the Expert Committee on Variable Capital Company (May 2021)
- Press Information Bureau, Ministry of Finance — Expert Committee on Variable Capital Company submits report to IFSCA Chairperson (28 May 2021)