The Company is committed to conducting business in accordance with the highest standards of business ethics and complying with applicable laws, rules and regulations.
- Fair Practices Code Pursuant to the Notification issued by the Reserve Bank of India by its Circular No.RBI/2006-07/138 DNBS (PD) CC No.80/03.10.042/2005-06 dated 28th September 2006, M/s. M S Investments Limited (referred to as the "Company") has formulated this Fair Practices Code to lay down the following procedures/practices in dealing with the business transactions.
- Applications for loans and their processing 1. All the communications to the borrower shall be in the vernacular language (region wise) or a language as understood by the borrower.
- Acceptance and Receipt of Application 1. The company shall provide to borrower a pre-printed receipt or acknowledgement towards the receipt of application form.
- Loan processing, appraisal and terms/conditions 1. The company shall convey in writing to the borrower about the sanction of loan along with the details of amount of loan approved, rate of interest ,tenure of loan, security details and other terms and conditions as the company deem fit for effective disclosures and more precisely the penal interest and other charges(if any) in case of delay in payment of interest/loan/installments. ( the facts to be printed in bold letters in the loan application / loan agreement itself)
- Disbursement of loans including changes in terms and conditions 1. The company shall disburse the loan only by way of banking transaction and only in the name of applicant after the execution of the loan agreement.
- Post disbursement supervision
- Timely Supervision 1. The companies shall carryout supervision on the loan account from time to time and monitor the performance of the loan in line with the normal business practice, the terms of sanction, and the guidelines issued by the Reserve Bank of India from time to time.
- Payment of Interest / Repayment of loans and release of security against loan 1. The company shall acknowledge the borrower with a receipt on receiving the payment either towards interest or otherwise.
- Default by the borrower 1. The company shall issue a notice to the borrower with regard to the nature of default immediately.
- General terms and conditions 1. The company shall give proper notice to the borrower of any change in the decision or policy of the company with regard to the terms and conditions as specified in the loan agreement.
- In the cases of gold loans or loans against other movable assets:- 1. The company shall deploy adequate steps to ensure that the KYC guidelines stipulated by RBI are complied with and to ensure that adequate due diligence is carried out on the customer before extending any loan.
- Complaints and Redressal mechanism 1. The company shall lay down appropriate grievances redressal mechanism to resolve the complaints and grievances of the customers.
The Company continues to believe in its philosophy that Corporate Governance envisages the attainment of the highest level of transparency, accountability and equity in all areas of its operations and interactions with customers, shareholders, investors, employees, and government authorities.
The Company emphasizes on good Corporate Governance and believes in maintaining highest standards of quality and ethical conduct in all activities of the Company. as it would not only encourage value creation but also provide accountability and control systems commensurate with the risks involved.
The foundation of M/s. Srestha Finvest Ltd has been built on high standards of integrity, fair business practices, efficient, safe and trusted financial policies. The Board of directors had adopted a code of conduct (the Code) for the Directors and members of Senior Management of the company to further strengthen the business policies of the company with highest level of transparency, accountability and equity, in all facets of its operations and in all its interactions with its stakeholders including shareholders, the government, lenders and employees.
2. The loan applications of the company shall provided all the terms and conditions to the borrower including the rate of interest along with the time period of per annum basis and processing fees etc if any.
3. The loan application shall provide with the list of documents to be annexed as part of application for the purposes of processing of the same.
4. The company shall provide for minimum period for the purpose of processing the loan applications.
5. Wherever possible the comparative analysis of terms and conditions of other companies could be made available to the borrower for making informed decision.
2. The company shall accept the application form only when the required particulars are duly available along with the required annexure/documents.
3. The company shall maintain a register of receipts/acknowledgements issued towards the application received and shall be kept under authority.
2. The company shall enter in to proper loan agreement disclosing all the relevant terms and conditions of the loan sanctioned and also shall provide a specific clause to the effect that any change in the interest shall be only prospective.
3. The company shall provide the loan agreement copy along with application copy to the borrowers. The loan agreement in any preferred language of the borrower can be provided subject to payment of certain basic fees to be charged by the company (to be indicated to the borrower clearly)
2. The company shall disclose to the borrower along with disbursement the disbursement schedule, interest rates, service charges, prepayment charges , penalties, misc. charges fees (if any) and other terms and conditions as company deems fit for effective disclosures.
3. The company shall provide to the borrower in vernacular language a copy for any changes in the terms and conditions of the loan.
4. The changes in the rate of interest (if any) shall be only prospectively. A appropriate disclosure to be made in the loan agreement itself.
2. The company decision with regard to recall/ acceleration of payment shall only be as provided in the loan agreement.
2. The company shall close/cancel the loan agreement and release the security only when full and final payment due from the borrower is received.
3. The company shall keep informed the borrower by way of notice if any dues are pending or recoverable before initiating any legal action for claim.
4. All the recovery proceeding shall be purely in terms of references provided in the loan agreement. No undue harassment shall be made to borrower and the staff of the company shall be trained to deal with the borrower in dignified manner.
5. Incase of any transfer request or otherwise from the borrower the company shall respond with in a period of 21 days and such transfer shall be as per transparent contractual terms in consonance with law.
2. The company shall take all the necessary legal steps in due course if the default by the borrower is not made good with in the time provided by the company.
3. The company shall issue a notice to the borrower of its intention for exercising its rights or lien along with the details of the outstanding dues and shall proceed in case the default is not made good with in the allotted time period.
4. The company shall not resort to any undue harassment and all the proceeding shall be in a legal and respectful manner.
2. The company shall not alter or effect any policy or decision which shall effect original terms and conditions laid down in the loan agreement. Any such change shall necessarily be effected only after receiving a written consent of the borrower.
3. The company shall immediately inform the borrower to refrain from any activities which shall affect the terms of loan agreement or affect the right/title of the security made available to the company in terms of the loan given by the company to the borrower.
4. The company shall maintain all proper records such as applications, correspondences, receipts, agreements etc with regard to the all the loans granted by the company under strict supervision and control.
5. The Board of Directors shall ensure that proper and periodic reviews are made with regard to performances of the loans, effective implementation of policies and procedures laid down, effective maintenance of all the relevant records.
2. Proper assaying procedure for the jewellery received.
3. Internal systems to satisfy ownership of the gold jewellery.
4. The company shall also deploy putting in place adequate systems for storing the jewellery in safe custody, reviewing the systems on an on-going basis, training the concerned staff and periodic inspection by internal auditors to ensure that the procedures are strictly adhered to. As a policy, loans against the collateral of gold should not be extended by branches that do not have appropriate facility for storage of the jewellery.
5. The jewellery accepted as collateral shall be appropriately insured.
6. The Board approved policy with regard to auction of jewellery in case of non-repayment shall be transparent and adequate prior notice to the borrower should be given before the auction date. It lay's down the auction procedure that would be followed. There should be no conflict of interest and the auction process must ensure that there is arm's length relationship in all transactions during the auction including with group companies and related entities.
7. The auction shall be announced to the public by issue of advertisements in at least 2 newspapers, one in vernacular language and another in national daily newspaper.
8. As a policy the company shall not participate in the auctions held.
9. Gold pledged will be auctioned only through auctioneers approved by the Board.
10. The policy shall also cover systems and procedures to be put in place for dealing with fraud including separation of duties of mobilization, execution and approval.
11. The loan agreement shall also disclose details regarding auction procedure.
2. An appropriate time frame shall be devised for addressing all complaints.
3. The company shall deploy appropriate persons for handling complaints. Who shall be the contact point with customers and his contact details shall be provide to the complainant.
4. There shall be a periodic review of the entire system.