AHMEDABAD, July 29: Ahmedabad Finance Companies Association (AFCA), at its third annual general meeting, has adopted a code of conduct for "promoting honourable and ethical practices ensuring transparency in the dealings".

Speaking on the occasion, AFCA chairman PR Vyas said that in the present scenario there was a need to re-examine the past assumptions about resource mix - the proportion of deposits, maturity profile and borrowings adding it was time to consolidate and concentrate on core competence rather than be lured away by temptation or unrelated diversification.

Vyas, who was re-elected chairman for the third consecutive year, exhorted the member-companies to forge a closer link with share holders and public, and among themselves. He asked the regulatory authorities not to respond to "knee-jerk reactions and not to treat the whole NBFC sector as the accused."

Executive director of Bombay-based Association of Leasing and Financial Services (ALFS) Mahesh Thakkar, who was also present at the meeting, said that so far neither the union finance ministry nor the RBI has placed any ban on NBFC's going for external commercial borrowings (ECBs).

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.