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.