Introduction

Reserve Bank of India (RBI) vide its circular Ref no. DNBS (PD) CC No. 80/03.10.042 / 2005-06 dated September 28, 2006 has advised all the non banking financial companies to frame a fair practices code ("the Code").

RBI has prescribed board guidelines on fair practices which includes processing of application for loans, loan appraisal, disbursement of loans including changes in terms and conditions and certain other conditions which NBFCs need to follow.

Background

ICICI Securities Primary Dealership Ltd is a Primary Dealer registered with RBI. ICICI Securities Primary Dealership Ltd, being a Primary Dealer, is registered with RBI under Section 45 IA of the Reserve Bank of India Act, 1934 as a Non-banking financial institution without accepting public deposits and is also a Company registered under the Companies Act, 1956.

Applicability

As per RBI guidelines applicable to the Primary Dealers, the Primary Dealers are prohibited to lend. Accordingly, the provisions relating to processing of application for loans, loan appraisal, disbursement of loans including changes in terms and conditions as prescribed in the RBI guidelines on fair practices code are therefore not applicable to the Company.

However, the Company has the appropriate grievance redressal mechanism within the organization to resolve disputes of the clients of the Company. Such a mechanism ensures that all disputes are heard and disposed of at the earliest.

The Company shall periodically review the compliance of the Fair Practices Code and the functioning of the grievances redressal mechanism at various levels of management. A consolidated report of such reviews shall be submitted to the Board on a quarterly basis.