A Fair Practices Code has also been adopted by SIDBI which, inter-alia, clearly sets out the procedures that would be followed in respect of loan applications, appraisals and disbursements.
In order to boost investment in SSI sector, the benefits of exemption of capital gains arising from the transfer of longterm capital assets are allowed if such capital gains are invested in bonds by the Small Scale Industries Development Bank of India (SIDBI) with effect from April 2002.