Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
20 Jun 2007
Case Brief
On May 29, 2007, the Reserve Bank of India cancelled the Certificate of Registration of Jaju Enterprises Limited (presently known as Atharv Enterprises Limited), registered at Kolhapur, for carrying on NBFC business. RBI stated that the company had opted to exit from the business of a non-banking financial institution. As a result, the company is no longer permitted to transact NBFC business under Section 45-I(a) of the RBI Act, 1934.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Jaju Enterprises Limited, presently known as Atharv Enterprises Limited, for carrying on the business of a non-banking financial institution. The stated reason was that the company had opted to exit from the business of a non-banking financial institution. After cancellation, the company cannot transact NBFC business as defined in Section 45-I(a) of the RBI Act, 1934.
Operating Impact
The company must stop conducting non-banking financial institution business and cannot carry on NBFC activities going forward. Depositors/counterparties dealing with it in an NBFC capacity are affected by the cessation of its licensed business.
Regulatory Basis
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 29 May 2007
- Effective From
- 29 May 2007
- Entities Affected
- 1
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to Atharv Enterprises Limited