Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
23 May 2003
Case Brief
The Reserve Bank of India cancelled the licence of Astha Corporation Private Limited, located in Sanathnagar, Hyderabad, for carrying on business as a non-banking financial institution. The release states that the licence was cancelled as surrendered on May 21, 2003, and that the cancellation was made under Section 45-1A(6) of the RBI Act, 1934. In addition, the company was prohibited from accepting deposits from the public under Section 45MB(1) and from alienating assets under Section 45MB(2) of the Act.
Why RBI Acted
The Reserve Bank of India cancelled the licence of Astha Corporation Private Limited, Hyderabad to carry on the business of a non-banking financial institution, stating that the licence was cancelled as surrendered on May 21, 2003. The release also says the company was prohibited from acceptance of deposits from the public under Section 45MB(1) and from alienation of assets under Section 45MB(2) of the RBI Act, 1934. The cancellation was issued under Section 45-1A(6) of the RBI Act, 1934.
Operating Impact
Astha Corporation Private Limited can no longer operate as an RBI-licensed non-banking financial institution. It must not accept public deposits or transfer/alienate assets, and the restrictions directly affect the company’s operations and any potential depositors or counterparties.
Regulatory Basis
- Section 45 MB (1) of the Reserve Bank of India Act, 1934
- Section 45 MB (2) of the Reserve Bank of India Act, 1934
- Section 45-1A (6) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 21 May 2003
- Effective From
- 21 May 2003
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC