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SOCIALIST REPUBLIC OF
SRI LANKA
FINANCE BUSINESS
ACT, No. 42 OF 2011
Short title
PART I
LICENSING OF FINANCE COMPANIES
2. (1) Subject to the provisions of section 3 of this Act,
no person other than a person licensed under this Act shall
carry on finance business.
(2) No person, other than a person licensed to carry on
finance business under this Act or a person exempted from
the application of the provisions of this Act in terms of
section 3, shall accept deposits.
(3) A person shall not be eligible to be licensed as a
finance company under this Act unless such person is a
company registered under the Companies Act, No. 7 of 2007,
and such company is not a company limited by guarantee, a
private company, an offshore company or an overseas
company within the meaning of the Companies Act, No. 7
of 2007.
(4) Any person who contravenes the provisions of
subsections (1) or (2) shall be guilty of an offence under this
Act.
2PL 005688 4,090 (04/2011)
Carrying on
finance business
and accepting
deposits, without
authority, to be
an offence.
Non-application
of provision of
this
Act to certain
institutions.
Application for
a license.
Licensing of
companies as
finance
companies.
Register of
finance
companies
and
publication
of names of
finance
companies.
Exhibiting
the licence of
finance
company.
Duty of
finance
company to
notify Board
of cessation
of finance
business.
10
Directions of the
Board.
11
12
13
14
15
16
Action on
failure to
comply with
directions.
Directions to
submit
documents
and
information.
Rules.
17
Core capital
Reserve Fund.
18
Failure to repay
deposit or pay
interest to be an
offence.
Disqualifications
for holding
certain posts in
finance
companies.
19
(f)
(i)
(ii)
(i)
(ii)
20
ended or cancelled;
21
Declaration of
assets and
liabilities.
Transfer of
dormant
deposits to a
special account
in the Central
Bank.
22
23
PART III
EXAMINATIONS AND SUPERVISORY ACTIONS ON
FINANCE COMPANIES
24. (1) The Director by himself, or by any officer of the
Central Bank or any other person, authorized on that behalf
by the Director, may examine the books and accounts of
every finance company at least once in each examination
period, and may make such further examinations in respect
of any specified finance company as the Director may deem
fit and for such purpose, may do one or more of the
following(a) require any finance company, or a director, secretary,
manager, employee, auditor, agent or contractor of
any finance company to furnish him within such
period and in such manner or form as he may specify,
information as he considers necessary;
(b) require any finance company or a director, secretary,
manager, employee, auditor, agent or contractor of
any finance company to produce for inspection
books, records, files, registers, and such other
documents, maintained in print, electronic or any
other form, of such finance company and to provide
authenticated copies in any form as required of such
books, records, files, registers and such other
documents;
(c) enter the premises or storage area of any finance
company, and notwithstanding anything to the
contrary in any other written law, examine books,
records, files, registers, and such other documents,
maintained in print, electronic or any other form,
of such finance company and may obtain copies,
authenticated or otherwise, in any form of such
books, records, files, registers and such other
documents:
Examination of
books and
accounts etc of
finance
companies.
24
25
26
27
28
29
Financial
statements of
finance
company.
Balance sheet of
finance
company.
30
31
Transmission of
balance sheet
and income
statement of
finance
company to the
Director and
publication.
32
33
Suspension.
34
35
36
37
Winding up.
38
39
Priority of
claims in
winding up.
40
41
42
Vesting of
administration
and
management of
finance
company in
person.
43
Cancellation of
licence of a
finance
company.
44
45
Scheme of
Insurance of
Deposits.
Application for
insurance of
deposits.
46
Rules relating to
deposit
insurance.
47
Investigation.
48
49
50
51
52
53
54
55
Issue of
Freezing Order.
56
57
Information of
assets and
liabilities of a
person under
investigation.
58
Prohibition of
advertising
soliciting
deposits without
authority.
59
60
61
62
Media
institutions to
verify before
publishing
advertisements
soliciting
deposits.
Publication of
advertisements
soliciting
deposits without
authority is an
offence.
Action to be
taken regarding
wrongful gain.
63
64
65
(ii)
(iii)
66
67
68
(b)
(c)
69
Offences by a
director,
secretary, chief
executive
officer,
manager,
officer,
employee or
auditor of a
finance
company.
70
71
Hearing and
decision on
applications
made under this
Act.
Abetting to
commit an
offence is an
offence.
Penalties.
72
73
Provision for
appeals from
certain orders.
74
PART IX
GENERAL
Fund.
Authority to
represent and
delegation of
powers.
Maintenance of
secrecy.
75
Finance
companies and
banks to inform
the Director of
persons
carrying on
finance business
or accepting
deposits without
authority.
Members of the
Board, Director,
authorized
officers deemed
to be public
servants.
76
Director,
authorized
officers deemed
to be public
officers.
Offences to be
cognizable and
bailable.
Pre-condition
for prosecution.
77
Providing
temporary
financial
assistance &
guarantees by
the Board.
78
Regulation of
the Minister.
79
Repeal and
savings.
80
This Act to
prevail over
other laws.
Deposit.
a foreign government;
81
82
74.
83
84
85
86
87
88
89
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