FAIR PRACTICES CODE

The Reserve Bank of India vide their Circular No.DNBS (PD) CC No.80/03.10.042/2005-06 dated September 28, 2006 has prescribed that broad guidelines on fair practices to be framed and approved by the Board of Directors of all Non-Banking Financial Companies. The fair practices code so framed and approved by the Board of Directors should be published and disseminated on the web-site of the Company, if any, for the information of the public.

1. Application for Factoring and their processing

i) The Factoring Facilities Application Form of SBI Factors & Commercial    Services Pvt. Ltd. (SBI Factors), includes the complete information, which    may affect the interest of the client, so that a meaningful comparison with    the similar terms and conditions offered by other Factoring Companies.
ii) The Application Form of SBI Factors for availing Factoring Facilities also    indicates that documents required to be submitted along with Application    Form.
iii) SBI Factors would indicate the time frame within which loan application    will be verified and disposed off while giving acknowledgement.

2. Appraisal and terms/conditions

SBI Factors conveys in writing to the client by means of sanction letter or otherwise stating details, the amount of limit sanctioned along with all terms and conditions thereof, including Finance Charges, Service Charges etc. and will also keep client acceptances of these terms and conditions on the record.

3. Disbursement of loan including changes in terms and conditions

SBI Factors will give notice to the client, if any change in terms and conditions including disbursement schedule, interest rates and charges are effected only prospectively.

i) Decision to recall / accelerate payment or performance under the    agreement should be in consonance with the loan agreement.

ii) SBI Factors will release all securities on repayment of all dues or on    realization of the outstanding amount of the clients subject to any    legitimate right or lien for any other claims, which SBI Factors may have    against the client. If such right of set off is to be exercised, the client    would be given notice about the same with full particulars about the    remaining claims and the documents under which SBI Factors is entitled to    retain the security till the relevant claim is settled /paid.

iii) SBI Factors will release all securities of its Borrower only on repayment of    dues by such Borrower; or only on realization of the outstanding amount of    the Borrower’s availed limit, subject to any legitimate right or lien for any    other claim which SBI Factors may have against it Borrower.

4. General

i) The SBI Factors will refrain from interference in the affairs of the client    except for the purposes provided in the terms and conditions in the    Factoring Agreement (unless New information not earlier disclosed by the    borrower, which may come to notice of SBI Factors).
ii) In case of receipt of request from the client for transfer of borrowal    account, the consent or otherwise i.e. Objection of the SBI Factors if any,    will be conveyed within 21 days from the date of receipt of request. Such    transfer will be as per transparent contractual terms in consonance with    law.
iii) In the matter of recovery of factoring facilities, the SBI Factors does not    resort to undue harassment viz., persistently bothering the client at odd    house, use of muscle power for recovery of factoring facilities etc.

5. Grievance Redressal Mechanism

i) SBI Factors would have a appropriate grievance redressal mechanism    within the organization to resolved disputes if any, arising in relation to    factoring for clients. Such mechanism should ensure that all disputes    arising out of the secession of a SBI Factors functioning falling upto the    sanctioning powers of SVP & COO would be heard and disposed off at least    by next higher authority at Corporate Office. In respect of sanctioning    powers of MD & CEO, any grievance will be put up to Committee of    Directors.
ii) The Board of Directors will also have on periodical review of the    compliance of the fair practices code and the functioning of the    grievances redressal mechanism at various levels of management.    Consolidated reviews will be submitted to the Board at quarterly intervals.