June 19, 1997
PR No. 69/1997

ACTION AGAINST GLOBAL FINANCE CORPORATION LTD. (CATEGORY- I, RTA) AND GFC MUTUAL FUND 
IIMARP DEPARTMENT

GFCL has sponsored GFC Mutual Fund which was granted registration by SEBI under Securities and Exchange Board of India (Mutual Funds) Regulations, 1993. GFCL is also a Category I Registrar and Share Transfer Agent (RTA) registered under Securities and Exchange Board of India (Registrar to an Issue and Share Transfer Agents) Rules and Regulations, 1993.
 
SEBI has been informed by RBI that Global Finance Corporation Ltd., (GFCL) which is an NBFC has been prohibited from accepting deposits from the public in view of the deteriorating financial positions, violations of directions and various irregularities committed by it. RBI has further informed that GFCL shall not sell, transfer, create, charge or mortgage or deal in any manner with their property and assets without the permission of RBI. Besides four of the directors on the Board of GFCL and the key personnel have resigned.
 
In view of the above, SEBI is of the view that it is not in the interest of investors and securities market to allow GFC Mutual Fund which is yet to launch a scheme, to carry out its activities as a Mutual Fund and also to allow GFCL to continue to function as an RTA. SEBI has therefore prohibited GFCL from undertaking any activity as RTA and GFC Mutual Fund from launching any scheme till further orders. The prohibition would also be applicable for GFC Capital Management Ltd. which is the Asset Management Company of GFC Mutual Fund to undertake any activity.