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The Reserve Bank of India, has on July 25,
2005 cancelled the certificate of registration granted to Daffordils Finance
Limited, Seohara, having its registered office at Jain Street, Seohara, Bijnor
District, Uttar Pradesh for carrying on the business of a non-banking financial
institution.
Following cancellation of registration certificate,
Daffordils Finance Limited cannot transact the business of a non-banking financial
institution. The company has also been prohibited from acceptance of deposits
and alienation of assets.
Under powers conferred by Section 45-IA
(6) 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
from 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 45-I of the Reserve Bank of India Act, 1934.
P.V.Sadanandan
Manager
Press Release: 2005-2006/328
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