The Reserve Bank held a Conference in Mumbai for the Directors and MD/ CEOs of Asset Reconstruction Companies (ARCs). The conference was attended by over 80 participants representing all 27 ARCs.
The conference emphasized that setting the right tone from the top is crucial in fostering a culture of integrity and ethical conduct. It highlighted several supervisory concerns in the functioning of ARCs. Conference urged the ARCs to adopt a regulation plus approach where there is compliance with both the letter of the regulation and also its spirit. Boards should accord due importance to assurance functions, namely, risk management, compliance and internal audit. These functions play a critical role in identifying and mitigating risks, ensuring compliance with laws and regulations as well as safeguarding the organization’s reputation.
