Reserve Bank Cancels Certificate of Registration of Hindustan Auto Finance Limited, New Delhi - RBI - Reserve Bank of India
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Published on December 23, 2003
Reserve Bank Cancels Certificate of Registration of Hindustan Auto Finance Limited, New Delhi
The Reserve Bank of India, has on December 12, 2003 cancelled the certificate of registration issued to Hindustan Auto Finance Limited having its registered office at Delhi Blue Apartments, Safdarjung Road. New Delhi-110 029 for carrying on the business of a non-banking financial institution.
Following cancellation of registration certificate, Hindustan Auto 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. However, the company is under an obligation to repay public deposits as per the terms of conditions of the contract of deposit. Under powers conferred by Section 45IA(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 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 : 2003-2004/766
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