Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Mar 2012
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration No. 07.00202 dated March 27, 1998, issued to Ashley Holdings Limited, whose registered office was at 19, Rajaji Salai, Chennai-600001. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934, because the company had voluntarily exited from carrying on non-banking financial institution activities. Following the cancellation, Ashley Holdings Limited is not permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled Certificate of Registration No. 07.00202 dated March 27, 1998, issued to Ashley Holdings Limited under Section 45-IA(6) of the RBI Act, 1934. The stated reason was that the company had voluntarily exited from carrying on NBFI activities. As a result of the cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
Ashley Holdings Limited loses its authorization to conduct NBFI business. The restriction is final in effect unless the company obtains any fresh regulatory approval in the future; customers and counterparties should not treat it as an active NBFC/NBFI for new business.
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
- 31 Jan 2012
- Effective From
- 31 Jan 2012
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC