Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
17 Sept 2013
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of Chennai Financeco Limited and Shubham Financial Services Limited under Section 45-IA(6) of the RBI Act, 1934. The companies were registered to carry on the business of a non-banking financial institution, and the release explicitly says that after cancellation they cannot transact such business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificates of Registration granted to Chennai Financeco Limited and Shubham Financial Services Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that, following cancellation, the companies cannot transact the business of a non-banking financial institution.
Operating Impact
Both companies are barred from carrying on non-banking financial institution business going forward. The restriction directly affects the two entities and their ability to operate as NBFCs; customers and counterparties dealing with them in that capacity would need to stop or unwind such activity.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Entities Affected
- 2
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to Chennai Financeco Limited