Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
7 Aug 2002
Case Brief
The Reserve Bank of India notified that, exercising powers under Section 45-IA(6) of the RBI Act, 1934, it had cancelled as surrendered the Certificate of Registration issued to Capital Fortunes Ltd., Hyderabad. The registration had authorised the company to conduct non-banking financial institution business. With the cancellation in effect, the company is prohibited from transacting NBFC business under the RBI Act.
Why RBI Acted
Under Section 45-IA(6) of the RBI Act, 1934, RBI cancelled the Certificate of Registration issued to Capital Fortunes Ltd. on the basis that it had been surrendered on August 6, 2002. The company had been authorised to carry on the business of a non-banking financial institution, and following cancellation it cannot transact NBFC business as defined under Section 45I(a).
Operating Impact
Capital Fortunes Ltd. must stop carrying on non-banking financial institution business. Customers and counterparties should treat the entity as no longer authorised to operate as an NBFC.
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
- 6 Aug 2002
- Effective From
- 6 Aug 2002
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC