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.

Published In:Inter Alia - Quarterly Edition - September 2020 [ English
Date: September 30, 2020