3.17

Risk Management System

The policy relating to Risk Management System is given in Paragraph 3.19 of FTP. The Risk Management System shall be in operation as under:-

(a) Computer System in DGFT HQ, on random basis and on the basis of guidelines issued by DGFT from time to time, will select 10% of cases for each RA which has issued scrips/ status holder certificates in the preceding month by 10th of every month.

(b) The list of such selected cases will be sent to concerned RA by NIC by 15th of the month.

(c) Concerned RA, will in turn, ask for the original/ physical documents by 30th of the month for examination in detail.

(d) The applicant shall be under obligation to submit the document asked for in the next 15 days.

(e) Concerned RA in turn will examine such documents in next 15 days. In cases, there is any deficiency the applicant shall rectify it in next one month from the date of communication by RA. In case of excess availment of rewards, the applicant shall refund the excess claim with interest as prescribed in paragraph 3.19 of FTP.

(f) In case the applicant fails to submit the r eq ui r ed original documents/ rectify the deficiencies / refund the excess claim asstipulated above or does not respond to any communication regarding the Risk Management System within 15 days of receipt of such communication, RA will initiate action as per FTDR Act and Rules.