Promoters may be told to simplify group structures, remove multiple layers

RBI likely to ask core investment firms to merge; Birla group takes the cue

Promoters of Indian companies who hold shares in group firms via core investment companies (CICs) are likely to be asked to streamline the structures of these CICs to make them less complex by removing multiple layering.

According to banking sources, the Reserve Bank of India (RBI) may ask the registered CICs to merge into a single entity, a move aimed at improving corporate governance in the wake of the scandal involving Infrastructure Leasing & Financial Services (IL&FS).

Taking a cue from the move, the Aditya Birla group has started the process and is merging its promoter holding companies into Birla Global Holdings