Finance Companies’ Association (India) (FCA – earlier called ELAI) led by many Doyens of the Finance Industry has been a Premier Trade Association and has rendered yeomen service for the development of the Finance Industry.
During its Silver Jubilee year in 2009-10, FCA constituted Finance Companies’ Research and Development Foundation (FCR&DF) to conduct studies and research on the Finance Industry to present its findings and suggestions to the regulatory authorities like the Finance Ministry, Reserve Bank of India, etc, for the benefit of the industry.
The Author of the Trust namely Finance Companies’ Association (India) has contributed the initial Corpus Fund of Rs. 10 lakh and some of the big companies in the Financial Services Sector have promised to make donations as soon as the research work gets started.
REGISTRATION AS A TRUST
Finance Companies’ Research and Development Foundation (FCR&DF) was registered with District Registrar of Central Chennai on 21st October 2011 as a Trust and its main object is to conduct research in and for the development of Financial Services Sector.
The main objective of FCRDF is to make an extensive and comprehensive study of the financial services sector, which will be helpful in making representations to the Reserve Bank of India (RBI), Government of India etc. RBI as well as the various committees formed by it have repeatedly recognised the vital role played by the Non-Banking Finance Companies (NBFCs) in the matter of dispensation of credit to those who could not be financed by the banking sector and NBFCs can justifiably take major credit for the exponential growth of the Road Transport sector. However, the benefits arising out of such recognition have not percolated to the NBFC Sector. On the one hand, RBI has been systematically enforcing stringent and rigorous norms for the NBFC sector on par with Banks, while at the same time, is not willing to extend many of the benefits enjoyed by the Banking sector, to the NBFCs. Small and medium companies find it extremely difficult to obtain funding from Banks and others. It is with a view to set right this anomaly that the Trust has embarked on the research activity.
APPOINTMENT OF TRUSTEES
As per the constitution of the Trust, the Board of Trustees can have a maximum of 12 (twelve) trustees. Presently the Trust has, the following as its Trustees:
|1||Mr. Vijay P Chordia||Managing Trustee|
|2||Mr. Kailashmull Dugar||Trustee|
|3||Mr. P S Balasubramaniam||Trustee|
|4||Mr. G V Raman||Trustee|
|5||Mr. T T Srinivasaraghavan||Trustee|
|6||Mr. V Gopalakrishnan||Trustee|
The Trust conducted the following meetings during the year 2012-13 jointly with the other trade Associations:
|09.10.2012||Growth of NBFC & Managing Growth||Mr. Kaushik Banerjee, President -Asset Finance, Cholamandalam Investment and Finance Co Ltd.|
1) Revised Guidelines issued by
RBI pursuant to Usha Thorat
2) Foreign Direct Investment (FDI) in Retail.
|Mr. R Sridhar, MD & CEO Shriram Capital Ltd & Chairman FIDC Mumbai.
Mr. K V Srinivasan, CEO, Reliance Capital Ltd, Mumbai.
|17.11.2017||Arbitration Act||Shri N L Rajah, Senior Advocate, Madras High Court|
The Trust has obtained exemption under Section 12AA of the Income Tax Act as well as exemption for donation receipts under Section 80G of the Income Tax Act. Efforts in progress to get donations from the member companies.
With this objective, we have had preliminary discussions with Madras School of Economics, Chennai, a renowned Research Organisation, to carry out an extensive research study and they have expressed their willingness to accept the assignment.
Memorandum of Understanding between FCRDF and Madras School of Economics has been signed on 28th March 2014. The expenditure incurred to undertake the research work was Rs. 15 lakh.
The Research Study on NBFC Sector was assigned to The Madras School of Economics (MSE) and the assignment has been completed. Efforts are being taken to publish the Report in the form of a Book for the benefit of the members of the Industry and for distribution to the relevant authorities.
M/s. Brahmayya & Co, Chartered Accountants, Chennai have been appointed as Auditors of the Trust "Finance Companies Research & Development Foundation". The present remuneration approved by the Trust is Rs. 9,000/- + applicable Service Tax to the Auditors Brahmayya & Co.
The Foundation received donations from the following Donors.
|Sl. No.||Name of Donor||Donations received|
|(2)||Shriram Transport Finance Co Ltd||10 lakh|
|(3)||Shriram City Union Finance Co Ltd||10 lakh|
|(4)||Sundaram Finance Ltd||10 lakh|
|(5)||Vijay Hemant Finance Ltd||5 Thousand|
|Total contribution||48 lakh 5 thousand|
It was also decided to send request letters to all our members and non-members for further donations.