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Standard Capital Markets Limited

FAIR PRACTICES CODE

Pursuant to the Notification issued by the Reserve Bank of India by its Circular No. DNBS(PD)CC No. 80/03.10.042/2005-06 dated 28.09.2008, Standard Capital Markets 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. This Code shall come into effect on 12th October 2006.

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OBJECTIVE

The code has been developed with an object to:

Ø  Promote Fair Practices and Transparency by setting minimum standard in dealing with customers.

Ø  Increase Customer confidence in the Company.

 

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CONTENTS

The company has adopted the Fair Practices Code, in pursuance of directions issued by Reserve Bank of India. The Fair Practice Code is intended to cover the following areas: -

Ø  Loan Applications & Processing

Ø  Appraisal and Sanction

Ø  Change in Terms & Conditions

Ø  Post Disbursement Supervision

Ø  General

Ø  Grievance Redressal

1. Loan Applications & Processing

i)             Loan Application Forms i.e. the credit application includes the necessary information to be given by the prospective borrower along with specified documents required by the company.

ii)            The receipt of the credit application is duly acknowledged & states that the loan application is taken on record without any commitment or liability on the part of the company.

iii)           An indicative time frame, within which the loan application will be disposed off, will be mentioned in acknowledgement for receipt of Loan Application.

2. Appraisal and sanction

i)             After appraisal of the credit application, the company shall convey to the prospective borrower by issuing a sanction letter containing the amount of loan sanctioned with other terms & conditions including annualized rate of interest.

ii)            The company shall keep the acceptance of the above sanction letter with the terms and conditions mentioned therein.

3. Change in Terms & Conditions

Notice should be given to the borrowers of any change in terms & conditions including disbursement schedule, interest rates, other charges etc.. The company shall ensure that changes are affected only prospectively.

4. Post Disbursement Supervision

i)             Decision to recall/ accelerate payment or performance under the agreement shall be inconsonance with the terms and conditions of the loan.

ii)            No Objection Certificate to be issued on recovery of all dues.

iii)           The company shall release all securities on repayment of all dues or on realization of the outstanding amount of loan by the borrower.

5. General

i)             The company refrains from the interference in the affairs of the borrowers, save and except for the purposes provided in the terms and conditions.

ii)            On receipt of request from the borrowers for transfer of borrowal account, the consent or objection, if any, will be conveyed within 21 days from the date of receipt of the request.

iii)           In the matter of recovery of loans, the company shall resort only to remedies which are legally and legitimately available to it and shall not resort to undue harassment to the borrowers.

6. Grievance Redressal

Any grievance in connection with this code shall be addressed to the Director of the Company. A periodical review of the compliance of the Code and disposal of grievances, if any, will be done by the Board of Directors. Report of such reviews will be prepared and submitted to the Board at regular intervals.

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