The domestic financial system regulators in India have put in place a system of monitoring designated financial conglomerates that focuses on assessment of inter-group and intra-group linkages and evaluation of the systemic risk emanating from the interconnectedness of the FCs.
Certain key issues that emanated from the last such meeting with a few FCs, included issues around non-adherence to arm’s length relationships amongst group entities; lack of group-wide risk management and group-wide exposure framework; lack of group-wide compliance framework, etc.