RBI cancels Sahara India Financial Corp's NBFC registration

Mumbai: In a fresh jolt to Saharas, Reserve Bank has cancelled Sahara India Financial Corporation’s certificate of registration as NBFC.[caption id=“attachment_1641737” align=“alignleft” width=“380”]  Sahara Group chairman Subrata Roy. AFP[/caption] “Following the cancellation of registration certificate, the above company cannot transact the business of a non-banking financial institution as laid down under clause (a) of Section 45-I of the Reserve Bank of India Act, 1934,” the central bank said in a statement. The registration of the Lucknow-headquartered NBFC stands cancelled with effect from 3 September, it added. The NBFC was registered in December 1998. Earlier in July, market regulator Sebi had cancelled the registration of Sahara Mutual Fund saying it was no longer ‘fit and proper’ to carry out this business and ordered transfer of its operations to another fund house. Sebi had also cancelled the Portfolio Management licence of a Sahara firm. Sahara Group chief Subrata Roy is in jail since 4 March 2014. The group is engaged in a long-running battle with Sebi in a case related to refunds totalling thousands of crores of rupees to investors. PTI