Professional Documents
Culture Documents
P Commission
Under the MRTP Act, a Commission has been established, the Chairman of which is
always a person who is or has been qualified to be a judge of the Supreme Court or of
High Court ( of a state). The members of the Commission are persons of ability,
integrity and standing who have adequate knowledge or experience of or have shown
capacity in dealing with problems relating to economics, law, commerce etc. The
commission is assisted by the Director General of Investigation and Registration
(DG) for carrying out investigation, or maintaining a register of agreements and for
undertaking carriage of proceedings during the enquiry before the MRTP
Commission. The powers of the Commission include the powers vested in a Civil
Court and include the following further powers :
In order to develop a strong professional organisation one needs values which are
spelt for an organisation through the following :
Code of Conduct: These are the Do's and Dont's or the work culture in an
organisation. The code of conduct defines the rights and duties of all
stakeholders starting from the CEO or Managing Director, the Board of
Directors, the Managers, Employees, Suppliers and Distributors and the
Customers and the Shareholders. The code of conduct is necessary for the
following :
3. Monitoring policies directed to ensuring that the agency complies with relevant
legislation and conforms with the highest standards of clinical/professional,
financial and ethical behaviour.
5. Reviewing its own processes and effectiveness, and adjusting the plans,
processes, as well as the balance of skills and experience required to obtain
continuous improvement.
What is the code of best practices for banks with respect to Guidelines
of RBI ?
The Reserve Bank of India (RBI) has issued guidelines for the formulation of Best
Practices Code (BPC) by banks to prevent frauds. The norms have been issued to
bring about a certain minimum level of uniformity with regards to the content and
coverage of the code.
The BPC modelled by select banks lacked uniformity in their content and coverage
and was not prepared envisaged by the Mitra Committee ( on legal aspects of bank
frauds ), prompting RBI to issue these norms, As per the norms, the BPC should be a
comprehensive and homogeneous document and take into account the instructions
relating to the common fraud prone areas and their prevention issued to banks by the
RBI from time to time, the notification said.
The Code should also highlight the recommendations of the Ghosh Panel and the
Mitra Committee. It should take into account the relevant recommendations of
Narang Committee's study of large value frauds, Narsimham Panel on banking sector
reforms and recommendations of the estimate committee on prevention of frauds in
banks.
The Code should cover all the functional areas like cash, safe custody of other
valuables, deposit accounts, investment portfolio, credit portfolio, foreign exchange
transactions and treasury operations. The BPC may also incorporate practices that
would help prevention of losses to its customers and include suitable guidance to
such customers.
The banking sector is not necessarily totally corporate. Some part of it is, of course
but a segment of banks is mostly government owned as statutory corporations or run
as cooperatives. Banking as a sector has been unique and the interests of other stake
holders appear more important to it than in the case of non-finance organisations. In
the case of traditional manufacturing corporations, the issue has been that of
safeguarding and maximising the shareholder's value. In the case of banking, the risk
involved for depositors and the possibility of contagion assumes greater importance
than that of consumers of manufactured products. Further, the involvement of
government is discernibly higher in banks due to importance of stability of financial
system and the larger interests of the public. Since the market control is not sufficient
to ensure proper governance in banks, the government does see reason in regulating
and controlling the nature of activities, the structure of bonds, the ownership pattern,
capital adequacy norms, liquidity ratios, etc.
1. Since banks are important players in the Indian financial system, special focus
on the Corporate Governance in the banking sector becomes critical.
2. The Reserve Bank of India, as a regulator has the responsibility on the nature
of Corporate Governance in the banking sector.
5. With a view to reducing the possible fiscal burden of recapitalising the Public
sector Banks attention towards Corporate Governance in the banking sector
assumes added importance prerequisites for Good Governance.
As per the estimates of the IMF, the aggregate size of money laundering in the world
could be somewhere between 2-5% of the world's GDP. This is estimated between
US$ 1-2 trillion each year.
PROCESS:
1. Placement: In this first stage, the launderer inserts the dirty money, into the
banks in the form of cash bank deposits.
2. Layering: This involves sending the money through banks to change its form
and make it difficult to follow. It would consist of bank to bank transfer, wire
transfer from one account to another; transfer to different to accounts in
different countries. Making deposits and withdrawals continuously and
purchasing high value items like cars, diamonds, etc.
AND
CORPORATE
GOVERNANCE
PROJECT
SUBMITTED BY :
JASRAJ SINGH
T.Y.B.B.I
ROLL NUMBER : 41
BUSINESS ETHICS
AND
CORPORATE
GOVERNANCE
PROJECT
SUBMITTED BY :
KHUSHBOO JAIN
T.Y.B.B.I
ROLL NUMBER : 60