FOX DIGITECH FINANCE LIMITED

FAIR PRACTICES CODE

This code shall be called the Fox Digitech Finance Limited Fair Practices Code.

PREAMBLE

This Code has been framed in compliance keeping in mind The Reserve Bank of India (RBI) has issued guidelines on Fair Practices Code for Non-Banking Financial Companies (NBFCs) along with circulars and master circulars issued from time to time thereby setting standards for fair business and corporate practices while dealing with their clients The rationale of this Code of Conduct (the Code) is to conduct the business of the Company in accordance with the relevant laws, regulations, and rules and with the highest standard of ethics and values.
The matters covered in this code are of outmost importance to the Company, shareholders, and other stakeholders of the Company and thus expedient for the company to incorporate the values that the company strives by this code of conduct for board of directors and senior management.
The Company shall adopt all the best practices prescribed by RBI from time to time and shall make appropriate modifications if any necessary to this Code to conform to the standards so prescribed
The Company’s policy is to treat all the clients consistently and fairly.
The Company will also communicate its Fair Practices Code (hereinafter as FPC) to its clients by uploading the FPC it on its website.

APPLICABILITY

This Fair Practices Code applies to the following categories of products and services offered by us (currently offered or which will be introduced at a future date).

Loans, guarantees and other products in financial assets.
Products offered through a network consisting of the branches of the Company, its subsidiaries, and associates.

Note: This code shall apply to the above irrespective of whether the same is provided physically, over the phone, on the internet or by any other method whatsoever, existing or futuristic.

DEFINITIONS

Board of Directors or Board means the Board of Directors of Fox DigiTech Finance Limited, as constituted from time to time.

Circulars means and includes circulars issued by Reserve Bank of India from time to time.

Company shall mean FoxDigitech Finance Limited.

Code of Conduct shall mean this code of conduct for the Board of Directors and Senior Management.

Regulations means regulations made by Securities Exchange Board of India as amended from time to time.

CODE OF CONDUCT FOR DEALING WITH CLIENTS

The key commitments which the Company promises to follow in its dealings with its clients are:

The Company shall endeavour to ensure that the implementation of the FPC is the responsibility of the entire organization.
The Company’s Board of Directors and the management team will remain responsible for implementing the fair practices hereinafter detailed by ensuring that its operations reflect its strong commitment to all the stakeholders in a fair and equitable manner.
The Company shall act fairly and reasonably in all dealings with its clients by ensuring that its products, services, procedures and practices meet the commitments and standards in this FPC, meet relevant laws and regulations in letter and spirit as applicable and all the dealings with its clients will rest on ethical principles of honesty, integrity and transparency and The Company’s fair lending practices shall apply across all aspects of its operations including marketing, loan origination, processing, and servicing and collection activities.
The Company will endeavour to assist clients in understanding how its financial products and services work by providing information about them in English and/or vernacular language wherever possible along with the financial implications thereof.
The Company’s vow to FPC will be exhibited in terms of employee accountability, training, counselling, and monitoring, auditing programs and internal controls and optimal use of technology.
The Company will endeavour to ensure that its clients have a trouble-free experience in dealing and minimum errors or commissions and omissions.
The company shall endeavour to minimized mistakes and correcting and handling expeditiously and in case a client is not satisfied with the way a complaint is handled, the Company may guide the client on how to take the complaint forward, subject to company’s policy and this code.

CLIENT SALES CODE

The Company shall endeavour to guide its prospective clients in choosing products and services which meets his / her requirements.
The Company shall endeavour to give the client information explaining the key features of the services and products the client has shown interest in.
The Company shall endeavour to give information on accounts, products and services which will suit the client’s needs.
The Company shall endeavour to clearly state the information that the Company requires to collect from the client to fulfil its ‘Know Your Client’ norms and to comply with legal and regulatory requirements in force from time to time.
The company may request for additional information about the client and his / her family to build a database subject to confidentiality policy in place.
The Company shall endeavour to provide information on the various channels that can be used to access its products and services and may also inform the places/ sources where the information may be accessed by the clients.
The Company shall endeavour to explain the client the products works in and on demand by the customer, may provide additional services for training and explanation purposes.
The Company shall endeavour to pilot its client on available rights and responsibilities specific to the mode of operation under which the product is taken.

LOANS AND ADVANCES POLICY

The company in order to establish fair dealing has established an appropriate internal principles and procedures for determining interest and other charges shall be laid down and be subjected to review keeping in view the and including business exigencies, regulatory and client sentiments, market practices and the company shall be governed by it.
Disbursement of loans including changes in terms & conditions shall be effected only prospectively and the loan agreement shall contain a specific clause to that effect.
The decision of the Company to recall / accelerate payment or performance shall be in consonance with the terms of the loan agreement.
The Company shall release all securities upon repayment of all dues or on realization of the outstanding amount of loan subject to any Legitimate right or Lien for any other claim it will have against borrower.

GENERAL ASSURANCE TO CLIENTS

The company shall refrain from interfering in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement, unless new information, not earlier disclosed deliberately or otherwise by the borrower, has come to its notice.
On request from the borrower for transfer of a borrower account to other NBFC, bank of financial institution, the consent or otherwise shall be conveyed expeditiously within 30 days from the date of receipt of such request and shall be in accordance with statutes, rules, regulations, and guidelines as will be applicable from time to time.
In the matter of recovery of loans, the Company shall resort only to remedies which are legally and legitimately available to it and will avoid using recovery measures during odd hours of the day, undue harassment, use of muscle power for recovery of loans and shall endeavour to exclude all kinds of rude and harassment behaviours.

TERMS AND CONDITIONS

The Company shall provide the client with the Rules and Regulations that are relevant to the product / service bought by it.

All Terms and Conditions shall be fair and will set the clients rights and responsibilities clearly and in English language, the Company shall be using legal or technical language only where necessary.

The Company shall upfront disclose any charges applicable to products and services applicable and shall be notifying new charges upfront.

The Company will provide the terms and conditions in respect of any product or service whenever a client requests for the same.

MARKETING AND PRODUCT SYNERGY

The Company endeavours to ensure that all advertising and promotional material is clear, fair reasonable and not misleading and shall endeavour to provide clients with a full range of financial products suitable for client.

The Company endeavours to bring synergy between the various financial services, financial products, by cross selling these products to its clientele and thus, the products of the company may be own or products of the group or associate companies having arrangements with.

CONFIDENTIALITY

The company endeavours to treat all personal information as private and confidential And shall not reveal transaction details to any other entity including within the group other than the following exceptional cases (including the ones in confidentiality policy):

Information to statutory or regulatory laws, public duty and public interest so requires.
If its interest requires us to provide this information (e.g. fraud and economic/ serious/ heinous offenses/ prevention).
The company shall endeavour to refrain from using this information for marketing and analytical purposes expect where client has expressly given consent / concurrence to provide/ share such information to its group / associate / entities or companies for providing other products or services or by consent express or implies authorizes the company to reveal such information to its group / associate / entities or companies for providing other services or products

GRIEVANCE REDRESSAL MECHANISM

The Company has also laid down the appropriate grievance redressal mechanism within the organization to resolve disputes arising in this regard in order to ensure that all disputes arising out of the decisions of the Company’s functionaries are heard and disposed of at least at the next higher level and the company shall be guiding the clients who wish to lodge a complaint and also provide guidance on what to do in case the client is unhappy with the outcome in accordance with such policy.

REPOSSESSION OF ASSETS AGAINST LENDING

The Company shall have a built in re-possession clause in the contract/loan agreement with the borrower which shall be legally enforceable. To ensure transparency, the terms and conditions of the contract/loan agreement shall also contain provisions regarding:

Notice period before taking possession of the asset;
Circumstances under which the notice period can be waived/ shorter notice can be given
The procedure for taking possession of the security/ collaterals;
A provision regarding final chance to be given to the borrower for repayment of loan before the sale / auction of the property/ asset;
The procedure for giving repossession to the borrower; and
The procedure for sale / auction of the property/ asset.

The company shall take adequate steps to ensure that the KYC guidelines stipulated by RBI are complied with and adequate due diligence is carried out on the client before extending any loan. This may include; Proper assaying procedure and Internal systems to satisfy ownership putting in place adequate systems for storing 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.
The Company would put in necessary framework and processes for ensuring compliance with the recommendations of the Working Group on NBFC lending against collaterals as enumerated under circulars of RBI.
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.
As a policy the NBFCs themselves shall not participate in the auctions held assets and gold pledged will be auctioned only through auctioneers approved by the Board.
This code shall also cover systems and procedures to be put in place for dealing with fraud including separation of duties of mobilization, execution, and approval.
The company in future will place a detailed policy to cover this aspect of repossession of lend assets.

REGULATION OF EXCESSIVE INTEREST RATE

The company may, if deem appropriate in future may adopt an interest rate model taking into account relevant factors such as, cost, margin and risk premium and determine the rate of interest to be charged for loans and advances.
The rate of interest along with approach for gradations of risk and rationale for charging such different rate of interest to different categories of borrowers shall be disclosed to the borrower or client upfront and in the application form and communicated explicitly in the sanction letter and shall be made available on website of the company or published in newspapers having wide circulations
The rate of interest may be annualized rates so that the borrower is aware of the exact rates that would be charged to the account.
This shall be in accordance with circular issued on RBI/ 2014-15/12/DNBS (PD).CC.No. 399/03.10.42/2014-15 dt. July 14, 2014 and thus the Company shall not charge foreclosure charges / Pre payment penalties on all floating rate term loans sanction to Individual Borrower.

COMPLIANCE WITH THE CODE

The Board is responsible to ensure compliance with the Code of Conduct and take necessary steps in the event of default. The Company shall abide by all guidelines, directives, instructions and advices of Reserve Bank of India as will be in force from time to time. The contents in this document shall be read in conjunction with these guidelines, directives, instructions and advices. The Company shall be apply better practice so long as such practice does not conflict with or violate Reserve Bank of India regulations.

WAIVER AND AMENDMENTS TO THE CODE

This Code is subject to the modifications and no amendment/waiver of any provision of the code is possible unless approved in writing by the Board of Directors of the Company.

DISCLOSURES

The code shall be disclosed in the Company’s website.

DISCLAMAIR

That it shall be obligatory on the part of every Director and Senior Management team Member to make an annual disclosure under this Code affirming their adherence to the Code on annual basis in the format appended.
That this Code is in addition to and not in derogation with any Act, Law, rules and regulations that governs the conduct of Board Directors.
That his disclosure shall be made to the Board of Directors on 01 April, for the financial year preceding the date.