The Reserve Bank of India, has on September 2, 2005 cancelled the certificate of registration granted to Mukat Finance Limited, having its registered office at Clerk House, 1st Floor, 8-Nathalal Parekh Marg, Colaba, Mumbai-400039 for carrying on the business of a non-banking financial institution.

Following cancellation of registration certificate, Mukat 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 45-MB (1) of this Act, the Reserve Bank can prohibit non-banking financial company from accepting deposits and under Section 45-MB (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.