Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Aug 2007
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of A.R.S. Securities Private Limited on July 16, 2007 under Section 45-IA(6) of the RBI Act, 1934. The firm, which had its registered office in New Delhi, was registered to carry on the business of a non-banking financial institution. Following the cancellation, it is no longer permitted to transact that business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to A.R.S. Securities Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that, after cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
A.R.S. Securities Private Limited must stop carrying on non-banking financial institution activity. Counterparties and customers cannot rely on it to conduct NBFC business after the cancellation takes effect.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 16 Jul 2007
- Effective From
- 16 Jul 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC