September 8, 2004
The Reserve Bank of India, has on August 18, 2004 cancelled
the certificate of registration granted to Baba Farid Investment Limited, having
its registered office at Dwareana Road, Kotkapura, District Faridkot for carrying
on the business of a non-banking financial institution as the company opted
to exit from the business of non-banking financial institution.
Following cancellation of registration certificate, Baba
Farid Investment Limited cannot transact the business of a non-banking financial
institution. The company is, however, under an obligation to repay public deposits
as per the terms and conditions of the contract of deposit.
Under powers conferred by Section 45IA of the Reserve Bank
of India Act, 1934, the Reserve Bank can cancel the registration certificate
of non-banking financial company. Under Section 45MB (1) of this Act, the Reserve
Bank can prohibit non-banking financial company for accepting deposits. The
business of a non-banking financial institutions is defined in clause (a) of
Section 45IA of the Reserve Bank of India Act, 1934.
P.V.Sadanandan
Manager
Press Release : 2004-2005/267
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