PRESS RELEASE
CHIEF OF BUSINESS BUREAU
April 9, 2009
IBA Chairman Releases ICSI Guidance Note on Diligence Report for Banks
Shri T S Narayansami, Chairman, Indian Bank’s Association released the Guidance Note on Diligence Report for Banks, prepared by the Institute of Company Secretaries of India (ICSI), at a function organized by the ICSI-CCRT at Mumbai in the august presence of Shri S Kothandaraman, General Manager, Bank of India, Shri A R Kuppuswamy, General Manager, Bank of India, Shri R N Vadivelu, Chief Executive, Foreign Exchange Dealers Association of India, Shri Datla Hanumanta Raju, President, The ICSI, Shri V S Khanvalkar, Vice-President, The ICSI, Shri S N Ananthasubramanian, Council Member, and Chairman, ICSI-CCRT, Management Committee, Shri Atul Mehta, Chairman, WIRC, The ICSI, and Shri N K Jain, Secretary & CEO, The ICSI.
Shri T S Narayansami, said in his address that this Guidance Note covering all aspects of the format of diligence reporting prescribed by RBI would be a ready made referencer for banks, borrowers and professionals like Company Secretaries undertaking this assignment. This cast on professionals a onerous responsibility opined Narayansami and expressed that they would uphold the high values in issuing the diligence report and act as extended arms of the Banks. The Bankers would also feel quite empowered to deal with the lending proposition once they would have Diligence Report, added Narayansami.
Datla Hanumanta Raju, President, the ICSI said in his address that the Reserve Bank of India, specified the framework to be observed by banks for improving the sharing/dissemination of information among the banks about the status of the borrowers enjoying credit facilities from more than one bank. The banks are required to obtain regular certification of Diligence Report from a professional, preferably a Company Secretary about conformity to statutory prescripttions in vogue, informed the President, ICSI and observed that the compact structure of the Diligence Report requires the Practicing Company Secretaries to critically examine all relevant records and documents of the borrowing companies which demands a high degree of skill and knowledge. The introduction of diligence reporting would lay down a strong foundation for good governance culture among borrowing corporates and enhance the confidence level of the banks over the period of time, he added.
Shri N K Jain, Secretary & CEO, The ICSI, while addressing assured that the CS community would own this responsibility of diligence reporting diligently and in the best interests of the country as Company Secretaries have the honour of conforming to the highest ethical standards during the course of their professional duties.
S N Ananthasubramanian, Council Member, the ICSI while proposing a vote of thanks expressed his sincere thanks and gratitude to T S Narayansami, Chairman, Indian Bank’s Association for sparing his valuable time to release the Guidance Note and for support and guidance in formulating the Guidance Note. He also placed on record his sincere thanks to Chairman and members of High Level Core Group on Banking & Finance for their valuable contribution in preparation of the Guidance Note on Diligence Reporting for Banks.
sd/-
Dr. Amita Ahuja
Senior Director
(Public Relations & Corporate Communication)
The Institute of Company Secretaries of India
ICSI House, 22 Institutional Area
Lodi Road , New Delhi - 110 003
Dr. Amita Ahuja
Senior Director
(Public Relations & Corporate Communication)
The Institute of Company Secretaries of India
ICSI House, 22 Institutional Area
Lodi Road , New Delhi - 110 003
Telefax- 011-24604756 , Mob- 9717196255
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