PANJIM: The Board of Directors of Manappuram Finance Limited met on February 10, 2012 at its headquarters at Valapad to review the operations and performance of the company in the context of the recent communication received from Reserve Bank of India.

The board noted that the company has 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 directed the company to take all necessary measures to fully address the concerns raised by the Reserve Bank of India. In particular, the company will take immediate steps to completely ring fence its operations from the operations of other entities owned or controlled by V P Nandakumar (executive chairman of the company) and his family to ensure that there is no overlapping of assets, branches or personnel between the companies.

Inorder to further enhance governance in the company, and to better manage its growth to the next level, the board has 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 will review all relevant aspects of operations, systems, controls and organization structure including board composition and effectiveness.

The committee will appoint leading independent legal counsel and other advisors as appropriate to assist with the review. Further, the company will retain a leading accounting firm to supplement the in-house internal audit team. A leading law firm, Amarchand Mangaldas and KPMG, will assist the committee in this independent review exercise.