The current practices being followed in supervision of these conglomerates include offsite surveillance through quarterly Returns, regular interactions with the CEOs of the Parent  5  Singh, Manmohan, Aitken, James: The (sizable) Role of Rehypothecation in the Shadow Banking System, IMF Working Paper, July 2010.
Higher non-core inflation penetrates economy in different ways (i) it impacts consumer purchasing powers since cutting down essentials is difficult and there is low price elasticity of food and energy, (ii) even if the Government delays the direct pass through of energy prices to consumers, businesses often pass through immediately higher costs of energy on to their consumers, and (iii) with inflationary trends persisting consumers and producers higher inflationary expectations set in trends too.