Fair Practices Code for Asset Reconstruction Companies

Our undertakings for long-term impact are an organic extension of our purpose.

They are to employ our deep knowledge of the law beyond the business, the transaction, the deal. To use the opportunities and skills we possess, to reflect on the culture we’re creating. Individually and collectively, these are our efforts to help shape the thinking of our future generations, and arm them with strategies for true, sustainable growth.

Sep 30, 2020

Fair Practices Code for Asset Reconstruction Companies

The RBI has, by way of its circular dated July 16, 2020 (‘ARC Circular’), advised asset reconstruction companies (‘ARCs’) registered with the RBI to adopt a fair practices code (‘FPC’), in order to achieve the highest standards of transparency and fairness in dealing with stakeholders. The RBI has set out some minimum expectation in relation to the FPC, and each ARC’s board is free to enhance its scope and coverage. ARCs are advised to put in place a duly approved FPC by their board, which is mandated to involve itself in the evolution and proper implementation of such FPC, including taking on periodic review of the compliance with the FPC. The FPC duly approved by the ARC’s board is to be made available in public domain for information of all stakeholders.

DISCLAIMER

These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.