Variable capital firms to boost India's fund management space, says Sahoo

Such entities have a variable capital base as they issues and redeems shares on an on-going basis. With every issue or redemption, the capital base of the VCC changes

Variable capital companies (VCC) would enrich the fund management space and make international financial services centres (IFSC) the preferred global hub for global financial services, M S Sahoo, head of the nine-member expert committee for drafting the structure of VCCs, told Business Standard.

A VCC is a body corporate that, as its name suggests, has a variable capital base. It issues and redeems shares on an on-going basis. With every issue or redemption, the capital base of the VCC changes.

“These companies would be a blend of two structures of polling and investing funds--companies and trusts--with appropriate regulatory burden coupled