The Reserve Bank of India, has
on May 10, 2005 cancelled the certificate of registration granted to KFIC Financial
Services Limited, having its registered office at 122, Sterling Centre, 11,
Moledina Road, Pune-411 001 for carrying on the business of a non-banking financial
institution.
Following cancellation of registration
certificate, KFIC Financial Services Limited cannot transact the business of
a non-banking financial institution. The company has also been prohibited from
acceptance of deposits and prohibited from alienation of assets.
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; and under Section 45MB (2), it can prohibit the company
from alienating its assets. 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: 2004-2005/1255
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