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SECURITIES
TRADING CORPORATION OF INDIA LIMITED - FAIR PRACTICES
CODE
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This
has reference to RBI Circular No. 2006-07/138/DNBS (PD)
CC No.80/03.10.042/2005-06 dated September 28, 2006,
wherein the Reserve Bank of India (RBI) has issued Draft
Guidelines on Fair Practices Code for NBFCs. RBI
has asked NBFC's to implement Fair Practice Code based
on these guidelines. This code sets minimum Fair Practice
standards for the company to follow when it is dealing
with the customer. It provides information to customers
and explains how the company is expected to deal with
the customers on day to day basis.
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(I)
Objective of the Code
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The
code has been developed with an object to :
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- Promote fair practices
by setting minimum standards in dealing with customer
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- Increase transparency
so that customer can have a better understanding
of what type of service level can be expected from
the company
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- Foster customer confidence
in the company
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(II)Application
of the Code
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The
code applies to all products, offered by the company.
Currently the following mentioned products are being
offered by our Company :
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(a)
Loan against securities
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(b)
Initial Public Offer (IPO) Financing
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(c)
Commodities Trading
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(d)
Promoter funding
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(III)
Key Commitment
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(a)
To help borrower / customer to understand how Company's
financial products and services work by :
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(i)
Ensuring that the customer is given clear information
aboutCompany's product and services, the
terms and conditions and interest rates/service
charges, which apply to them in the loan application
form
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(ii)
Keeping customer informed about changes in the interest
rates, charges, terms and conditions
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(b)
To act fairly and reasonably in all dealings with the
customer by:
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(i)
Meeting the commitments and standards in this code for
products and services offered by the Company
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(ii)
Making sure that products and services meet relevant
principles of integrity and transparency
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(iii)Informing
customer about the time limit by which loan application
will be processed and informing them of the status
at regular intervals
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(iv)
Handling customer complaints promptly
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(v)
Informing customers about the process to take their
complaints forward to the higher authorities
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(c)
To treat personal information of customers as private
and confidential
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(IV)
Information
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(a)
The customer shall be given information regarding interest
rates, terms and conditions for loan and other charges
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(b)
Acknowledgement shall be given on receipt of loan
application documents. Normal time frame for processing
of the Loan Application would also be informed to the
customers
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(c)
After the loan is sanctioned, customer shall be informed
about the interest rate at which loan is sanctioned,
and method of application thereof, mode & time at
which the interest will be debited (whether monthly
or quarterly) and other terms and conditions applicable
to loan.
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(d)
The Company shall inform customer about any changes
made in the terms and conditions like disbursement schedule,
interest rates, service charges, prepayment charges
etc applicable to the loan.
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(V)
Post disbursement Supervision
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(a)
Post disbursement supervision would be constructive
and the genuine difficulties which the borrower may
face, would be given due consideration
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(b)
In case there is a shortfall in margin/security given
due to market fluctuation which may require borrower
to give additional margin/security or due to some other
reason loan needs to be recalled or payment needs to
be accelerated earlier than schedule, same shall
be communicated to customer and sufficient notice as
per the agreement would to be given to him
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(c)
The Company shall release securities on repayment of
all dues or on realization of outstanding amount of
loan subject to any pending unsettled claims of the
Company and / or its group companies. The securities
would be withheld after informing client full particulars
about the pending claims and the conditions under which
the Company is entitled to retain the securities till
the relevant claim is settled
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(VI)Non-Interference
in the Affairs of the Borrower :
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The
Company shall not interfere in the affairs of the borrower
except for the purposes provided for in the terms and
conditions of sanction of the loan.
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(VII)
General
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(a)
The Company shall treat customer information as private
and confidential and shall be guided by following principles
and policies: The information shall be parted by
the Company only in the following circumstances:
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(i) Information required to be given under law or as
demanded or required by Statutory authorities
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(ii)
Information is given with customer's specific written
permission
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(b)
In case of receipt of request for transfer of borrowal
account, either from the borrower or from a lender which
proposes to take over the account, the consent or otherwise
would be conveyed within 21 days from the date of receipt
of request. Such transfer would be transparent
and as per contractual terms in consonance with law.
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(VIII)
Collection of Dues
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(a)
Company's collection policy shall be built on courtesy,
fair treatment and persuasion. Efforts will be made
in building customer confidence and long term relationship.
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(b)
The staff deputed to make recovery calls shall identify
themselves and shall provide details with regard to
outstanding claims to the customer
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(c)
Under no circumstances, Company shall resort to any
illegal means for recovery of the dues.
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(IX)
Complaints, Grievances and Feedback
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(a)
If complaint is received in writing or over phone, complaint
number would be given which would be referred
to in future. Complaint register would be maintained.
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(b)
Company will endeavor to sort out the matter within
fifteen days of receipt of a complaint
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(c)
In case the complaint requires more time, the
same would be informed to the customer. Customer
would be updated at regular intervals regarding the
status of the same.
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(d)
The grievance redressal mechanism within the organization
will be explained to the customer to resolve
any dispute, such a mechanism would ensure that all
disputes arising out of decisions of our functionaries
are heard and disposed off at least
at the next higher level.
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(e)
A complaint of misconduct against an official of the
Company shall be redressed by next
level of authority.
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(X)
Review
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The
Board of Directors will periodically review the compliance
of Fair Practices Code and the functioning of the grievances
redressal mechanism at various levels of management.
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| Shri
P Sanyal |
Shri
K V S Mani |
| Managing Director |
Compliance Officer |
| Tele : 022-3003
1105/1106 |
Tele: 022-3003
1115 |
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