Last updated on: 27th November 2024
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BACKGROUND
Si Creva Capital Services Private Limited is a private limited company, incorporated under the provisions of the Companies Act, 2013, having Corporate Identification Number (CIN) U65923MH2015PTC266425 (“Si Creva”/“Company”). Si Creva is a Middle Layer Non-Deposit taking Non-Banking Financial Company (“NBFC”) as per the Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023 (“RBI Directions”), registered and regulated by Reserve Bank of India (“RBI”) bearing Registration no. N-13.02129.
Si Creva is in the business of providing personal and business loans by using two digital lending applications viz; ‘Kissht’ and ‘PaywithRing’ and OnEMI Technology Solutions Private Limited, a Lending Service Provider (LSP). Besides this, it is also lending through mobile app and web-based applications on the platforms of other LSPs including as a co-lender.
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INTRODUCTION AND OBJECTIVE
In terms of Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023, every Middle Layer and above NBFC should ensure that there is a policy put in place for ascertaining the fit and proper criteria at the time of appointment of directors and on a continuing basis (hereinafter referred to as the “Fit and Proper Policy” / “Policy”). This Policy shall ensure that the Directors of the Company who are responsible for steering the affairs of the Company are fit and proper, besides having the necessary qualifications.
It may be added that the Company has separately adopted a Nomination and Remuneration Policy for its Directors, Senior Management, and KMPs.
Pursuant to any subsequent amendments or any statutory modifications or re-enactments in the above-stated guidelines/norms/clarifications or in any other applicable acts/regulations, if there is any change in any of the parameter(s) framed by the Board, then the act/regulation will have an overriding effect on the parameter(s).
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SCOPE AND COVERAGE
To put in place an internal process on a continuing basis, in order to streamline and bring uniformity in the process of due diligence while appointing/re-appointing directors and assessing their performance for the purpose of their continuance as directors, the policy lays down the norms to be followed for deciding the fit and proper criteria for the directors and assessing the same on a continuous basis.
Authority: The Board after the recommendation made by Nomination and Remuneration Committee (“NRC”), shall take forward the appointment or otherwise on the basis of the process of due diligence undertaken by the NRC to determine the ‘fit and proper’ status of existing directors/ the person proposed to be appointed as a director.
Need for prior approval of RBI: In the case of non-independent directors, it would be examined whether there is a need for seeking prior approval of RBI before the appointment of the selected person as a director of the Company. If so, the process would be put in place without delay for seeking RBI’s prior approval before giving the effect of the resolution of the Board and NRC. Only after approval from RBI, the filings with RoC would be completed.
Manner and procedure: The Company management shall obtain necessary information and declaration in the format enclosed as Annexure-1 from the persons proposed to be appointed as directors, for the purpose of consideration of NRC/ Board. Irrespective of whether prior approval of the RBI is entailed, or not the Company would seek all such documents [like the personal particulars in the prescribed format, bankers’ opinion report, CIBIL score, specified declarations including his / her (together with the interest of spouse and unmarried children) interest in other companies such as shareholding or directorships, consents, etc. in the format prescribed by RBI] as are required under RBI directions to be submitted to RBI for their post facto due diligence and all other documents as may be called for by RBI after submission of the documents.
Criteria: The NRC and Board shall determine the ‘fit and proper’ status of the existing directors at least at an annual interval and for the persons proposed to be appointed as directors at the time of their being considered for the purpose, based on the broad criteria as mentioned hereunder:
- Educational qualification
- Experience and field of expertise
- Track record and integrity
- Regulatory Compliances
- Contribution to the growth of business
- Enhancement in Relationship with stake holders – existing as well as prospective investors, bankers, financial institutions, customers, etc.
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Other requirements:
- He / She shall possess a valid Director Identification Number (DIN) or any other identification number prescribed by the Central Government which shall be treated as Director Identification Number for the purposes of the Act;
- He / She should not have been disqualified under the Act or pursuant to any Order of the Securities and Exchange Board of India or any other such Authority;
- He / She shall fulfill the age criteria as may be stipulated under the Companies Act, SEBI LODR Regulations and by the Reserve Bank of India;
- He / She if identified to be appointed as Independent Director, shall fulfil the criteria of Independence stipulated under the Companies Act, SEBI LODR Regulations, or any other applicable laws, as amended from time to time;
- He / She shall register his / her name for inclusion in the Databank maintained by the Indian Institute of Corporate Affairs (IICA) and have passed or been exempted from the online self-assessment test as prescribed under the Companies Act, in case of appointment as Independent Directors;
- There shall be no conflict of interest in performing duties as a Director on the Board or in case of conflict of interest, it would be prudent to conclude that the conflict will not create a material risk that the person will fail to perform the duties properly and independently, and adequate disclosures are made by the person in this regard.
(The above list is only illustrative and not exhaustive).
The NRC and the Board shall pass a resolution to the effect of selecting the proposed person as an additional director of the Company; in the case of a non-independent director requiring prior approval of RBI, the appointment will come into effect only after the RBI approval is received.
Reporting to Registrar of Companies (“RoC”) / RBI: Post appointment by the Board, necessary filing will be done with RoC within the prescribed timelines. Also, there would be reporting to RBI along with all the requisite documents for their information and record immediately but not later than 2 weeks after filing with RoC or submitting an application to RBI for seeking prior approval, as the case may be.
Execution of Deed of Covenants: Further, the directors should, in public interest, execute, every year, a Deed of Covenant with the Company in the format enclosed as Annexure-2.
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OTHER MATTERS
- It is mandatory that the directors must furnish a declaration every year as on 31st March that the information already provided by them has not undergone any change and where there is any change, requisite details are furnished by the directors forthwith. If there are any significant changes, the NRC should undertake the due diligence exercise afresh and examine the ‘fit and proper’ status of the director(s).
- The process of determining the ‘fit and proper’ status in respect of existing directors on the Board of the Company should be completed at the earliest.
- The Company shall submit to the Reserve Bank a quarterly statement (within 15 days of the close of the respective quarter) on the change of directors, and a certificate from the Managing Director of the Company that fit and proper criteria in the selection of the directors has been followed. The statement as on 31st March shall be certified by the Statutory Auditors of the Company.
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REVIEW OF THE POLICY
The Policy will be reviewed at yearly intervals or as and when considered necessary by the Nomination and Remuneration Committee and thereafter be approved by the Board of Directors of the Company and will be revised based on extant regulatory guidelines from time to time.
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OMNIBUS CLAUSE:
All extant & future master circular/directions/guidance/guidance notes issued by RBI and other regulators from time to time would be the directing force and will super cede the contents of this policy.
For Si Creva Capital Services Private Limited
ANNEXURE 1
Declarations / Undertaking from the Current Directors / Proposed Directors
Name of NBFC: Si Creva Capital Services Private Limited
Declaration and Undertaking by Director (with enclosures as appropriate as on ………..)
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Personal details of the director
- Full name & DIN –
- Date of Birth –
- Educational Qualifications –
- Relevant Background and Experience –
- Permanent Address –
- Present Address –
- E-mail Address / Telephone Number –
- Permanent Account Number under the Income Tax – Act, 1961 and name and address of Income Tax Circle
- Relevant knowledge and experience –
- Any other information relevant to the Directorship of the Company –
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Relevant Relationships of the director
- List of Relatives if any who are connected with the Company (Refer Section 6 and Schedule 1A of the Companies Act, 1956 and corresponding provisions of New Companies Act, 2013) –
- List of entities if any in which he/ she is considered as being interested (Refer Sections 299(3)(a) and 300 of the Companies Act, 1956 and corresponding provisions of New Companies Act, 2013) –
- List of entities in which he/ she is considered as holding substantial interest within the meaning of Master Direction – Non-Banking Financial Company Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 –
- Name of NBFCs in which he/ she is or has been a member of the board (giving details of the period during which such office was held) –
- Cases, if any, where the director or entities listed in II (b) and (c) above are in default or have been in default in the past in respect of credit facilities obtained from any NBFC / bank. –
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Records of professional achievements
- Relevant professional achievements –
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Proceedings, if any, against the director
- If the director is a member of a professional association/ body, details of disciplinary action, if any, pending or commenced or resulting in conviction in the past against him/her or whether he/she has been banned from entry into any profession/ occupation at any time –
- Details of prosecution, if any, pending or commenced or resulting in conviction in the past against the director and/ or against any of the entities listed in II (b) and (c) above for violation of economic laws and regulations –
- Details of criminal prosecution, if any, pending or commenced or resulting in conviction in the last five years against the director –
- Whether the director attracts any of the disqualifications envisaged under Section 164 of the Companies Act, 2013? –
- Has the director or any of the entities at II (b) and (c) above been subject to any investigation at the instance of Government department or agency? –
- Has the director at any time been found guilty of the violation of rules/ regulations/ legislative requirements by customs/ excise/ income tax/ foreign exchange/ other revenue authorities, if so give particulars –
- Whether number of directorships held by the person exceeds the limits prescribed under Section 165 of the Companies Act, 2013 –
- Name/s of the NBFCs, if any, with which the person is associated as Promoter, Managing Director, Chairman or Director including a Residuary Non-Banking Financial Company, which has been prohibited from accepting deposits/ prosecuted by RBI? –
- Whether the director is associated with any unincorporated body that is accepting deposits –
- Whether the director is associated with any company, the application for Certificate of Registration (CoR) of which has been rejected by the Reserve Bank –
- Whether there is any criminal case, including for offense under section 138 of the Negotiable Instruments Act, against the director –
- Whether the director has at any time come to the adverse notice of a regulator such as SEBI, IRDA, MCA, PFRDA, NHB –
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Any other explanation / information in regard to items I to III and other information considered relevant for judging fit and proper –
Undertaking
I confirm that the above information is to the best of my knowledge, information and belief true and complete. I undertake to keep the Company fully informed, as soon as possible, of all events which take place subsequent to my appointment which are relevant to the information provided above.
I also undertake to execute the deed of covenant as required.
Place : Mumbai
Date :…………..
Signature:
Name:
DIN:
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Remarks of Chairman of the Board of Directors of the Company –
Place : Mumbai
Date :
Signature:
ANNEXURE – WORK EXPERIENCE
ANNEXURE- 2
Deed of Covenant with a Director of
Si Creva Capital Services Private Limited
THIS DEED OF COVENANTS is made on this _______ day of _________ Two Thousand _____________ BETWEEN Si Creva Capital Services Private Limited bearing CIN U65923MH2015PTC266425 having its registered office at 10th Floor, Tower 4, Equinox Park, LBS Marg, Kurla West, Mumbai City, Mumbai, Maharashtra, India, 400070 (hereinafter a non-deposit taking NBFC with asset size of Rs. 1000 crore and above being called the “NBFC”) of the one part and Mr./Ms. ___________ resident of ______________ (hereinafter called the “Director”) of the other part.
WHEREAS
- The director has been appointed as a director on the Board of Directors of the NBFC (hereinafter called “the Board”) and is required as a term of his/her appointment to enter into a Deed of Covenants with the NBFC.
- The director has agreed to enter into this Deed of Covenants, which has been approved by the Board, pursuant to his said terms of appointment.
NOW IT IS HEREBY AGREED AND THIS DEED OF COVENANTS WITNESSETH AS FOLLOWS:
- The director acknowledges that his/her appointment as director on the Board of the NBFC is subject to applicable laws and regulations including the Memorandum and Articles of Association of the NBFC and the provisions of this Deed of Covenants.
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The director covenants with the NBFC that:
- The director shall disclose to the Board the nature of his/her interest, direct or indirect, if he/she has any interest in or is concerned with a contract or arrangement or any proposed contract or arrangement entered into or to be entered into between the NBFC and any other person, immediately upon becoming aware of the same or at the meeting of the Board at which the question of entering into such contract or arrangement is taken into consideration or if the director was not at the date of that meeting concerned or interested in such proposed contract or arrangement, then at the first meeting of the Board held after he becomes so concerned or interested and in case of any other contract or arrangement, the required disclosure shall be made at the first meeting of the Board held after the director becomes concerned or interested in the contract or arrangement.
- The director shall disclose by general notice to the Board about his/her other directorships, his/her memberships of bodies corporate, his/her interest in other entities and his/her interest as a partner or proprietor of firms and shall keep the Board apprised of all changes therein.
- The director shall provide to the NBFC a list of his/her relatives as defined in the Companies Act, 1956 or 2013 and to the extent the director is aware of directorships and interests of such relatives in other bodies corporate, firms and other entities.
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The director shall in carrying on his duties as director of the NBFC:
- use such degree of skill as may be reasonable to expect from a person with his/her knowledge or experience;
- in the performance of his/her duties take such care as he might be reasonably expected to take on his/her own behalf and exercise any power vested in him/her in good faith and in the interests of the NBFC;
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- attend meetings of the Board and Committees thereof (collectively for the sake of brevity hereinafter referred to as “Board”) with fair regularity and conscientiously fulfil his/her obligations as director of the NBFC;
- shall not seek to influence any decision of the Board for any consideration other than in the interests of the NBFC;
- shall bring independent judgment to bear on all matters affecting the NBFC brought before the Board including but not limited to statutory compliances, performance reviews, compliances with internal control systems and procedures, key executive appointments and standards of conduct;
- shall in exercise of his/her judgement in matters brought before the Board or entrusted to him/her by the Board be free from any business or other relationship which could materially interfere with the exercise of his/her independent judgement; and
- shall express his/her views and opinions at Board meetings without any fear or favour and without any influence on exercise of his/her independent judgement;
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The director shall have:
- fiduciary duty to act in good faith and in the interests of the NBFC and not for any collateral purpose;
- duty to act only within the powers as laid down by the NBFC’s Memorandum and Articles of Association and by applicable laws and regulations; and
- duty to acquire proper understanding of the business of the NBFC.
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The director shall:
- not evade responsibility in regard to matters entrusted to him/her by the Board;
- not interfere in the performance of their duties by the whole-time directors and other officers of the NBFC and wherever the director has reasons to believe otherwise, he/she shall forthwith disclose his concerns to the Board; and
- not make improper use of information disclosed to him/her as a member of the Board for his/her or someone else’s advantage or benefit and shall use the information disclosed to him/her by the NBFC in his/her capacity as director of the NBFC only for the purposes of performance of his/her duties as a director and not for any other purpose.
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The NBFC covenants with the director that:
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the NBFC shall apprise the director about:
- Board procedures including identification of legal and other duties of Director and required compliances with statutory obligations;
- control systems and procedures;
- voting rights at Board meetings including matters in which Director should not participate because of his/her interest, direct or indirect therein;
- qualification requirements and provide copies of Memorandum and Articles of Association;
- corporate policies and procedures;
- insider dealing restrictions;
- constitution of, delegation of authority to and terms of reference of various committees constituted by the Board;
- appointments of Senior Executives and their authority;
- remuneration policy,
- deliberations of committees of the Board, and
- communicate any changes in policies, procedures, control systems, applicable regulations including Memorandum and Articles of Association of the NBFC, delegation of authority, Senior Executives, etc. and appoint the compliance officer who shall be responsible for all statutory and legal compliance.
- the NBFC shall disclose and provide to the Board including the director all information which is reasonably required for them to carry out their functions and duties as a director of the NBFC and to take informed decisions in respect of matters brought before the Board for its consideration or entrusted to the director by the Board or any committee thereof;
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the disclosures to be made by the NBFC to the directors shall include but not be limited to the following :
- all relevant information for taking informed decisions in respect of matters brought before the Board;
- NBFC’s strategic and business plans and forecasts;
- organisational structure of the NBFC and delegation of authority;
- corporate and management controls and systems including procedures;
- economic features and marketing environment;
- information and updates as appropriate on NBFC’s products;
- information and updates on major expenditure;
- periodic reviews of performance of the NBFC; and
- report periodically about implementation of strategic initiatives and plans;
- the NBFC shall communicate outcome of Board deliberations to directors and concerned personnel and prepare and circulate minutes of the meeting of Board to directors in a timely manner and to the extent possible within two business days of the date of conclusion of the Board meeting; and
- advise the director about the levels of authority delegated in matters placed before the Board.
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- The NBFC shall provide to the director periodic reports on the functioning of internal control system including effectiveness thereof.
- The NBFC shall appoint a compliance officer who shall be a Senior executive reporting to the Board and be responsible for setting forth policies and procedures and shall monitor adherence to the applicable laws and regulations and policies and procedures including but not limited to directions of Reserve Bank of India and other concerned statutory and governmental authorities.
- The director shall not assign, transfer, sublet or encumber his/her office and his/her rights and obligations as director of the NBFC to any third party provided that nothing herein contained shall be construed to prohibit delegation of any authority, power, function or delegation by the Board or any committee thereof subject to applicable laws and regulations including Memorandum and Articles of Association of the NBFC.
- The failure on the part of either party hereto to perform, discharge, observe or comply with any obligation or duty shall not be deemed to be a waiver thereof nor shall it operate as a bar to the performance, observance, discharge or compliance thereof at any time or times thereafter.
- Any and all amendments and / or supplements and / or alterations to this Deed of Covenants shall be valid and effectual only if in writing and signed by the director and the duly authorised representative of the NBFC.
- This Deed of Covenants has been executed in duplicate and both the copies shall be deemed to be originals.
IN WITNESS WHEREOF THE PARTIES HAVE DULY EXECUTED THIS AGREEMENT ON THE DAY, MONTH, AND YEAR FIRST ABOVE WRITTEN.
For Si Creva Capital Services Private Limited
Director
Name:
Title:
DIN:
Director
Name:
In the presence of:
1. ……………..
2. ……………..