Manappuram Finance Ltd to act on RBI directives
KOCHI: The director board of Manappuram Finance Ltd has directed the company to take measures to address the concerns raised by Reserve Bank of India (RBI) and to take immediate steps to completely demarcate its operations from the activities of other entities owned or controlled by the company’s executive chairman V P Nandakumar and his family.The board of directors had given this directive to ensure no overlapping of assets, branches or personnel among the companies. The Board met on Monday to review the operations and performance of the company following the recent remarks made by the apex bank.The Board clarified that the company had not accepted any deposits from the public since March 22, 2011, in compliance with its status as a non-deposit accepting non-banking finance company.The Board also decided to constitute an independent committee of its members under the chairmanship of Jagdish Capoor, former Deputy Governor of RBI and former chairman of HDFC Bank. The committee would review all relevant aspects of the operations, systems, controls and organisation structure including the composition of the board and its effectiveness. The committee will appoint leading independent legal counsel and other advisors as appropriate to assist the review.Further, it was decided that the company would retain a leading accounting firm to supplement the in-house internal audit team. At the meeting, Nandakumar informed the board that he had issued public notices in dailies undertaking to honour all obligations to the depositors of his proprietary concern Manappuram Agro Farms, and without causing any inconvenience to them.