Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
13 Apr 2023
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of two NBFCs: BRD Securities Ltd and Lakshmi Finance Private Limited. The action was taken under Section 45-IA(6) of the RBI Act, 1934. Following the cancellation, the companies are prohibited from transacting the business of a Non-Banking Financial Institution as defined in the Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of BRD Securities Ltd and Lakshmi Finance Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that, as a result, the companies shall not transact the business of a Non-Banking Financial Institution as defined in the Act.
Operating Impact
Both entities must stop NBFC operations and cannot legally undertake non-banking financial institution business. Customers and counterparties dealing with these firms are affected by the cessation of regulated NBFC activity.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 13 Mar 2023
- Effective From
- 13 Mar 2023
- Entities Affected
- 2
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to BRD Securities Ltd