Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
3 Mar 2008
Case Brief
On February 11, 2008, the Reserve Bank of India cancelled the Certificate of Registration of Coastal Construction Leasing Private Limited, whose registered office was in Hyderabad. The release says the company had opted to exit the business of a non-banking financial institution, and that after cancellation it cannot transact NBFC business. The action was taken under Section 45-IA(6) of the RBI Act, 1934.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Coastal Construction Leasing Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states the cancellation was because the company had opted to exit from the business of a non-banking financial institution. Following cancellation, the company cannot conduct NBFC business.
Operating Impact
Coastal Construction Leasing Private Limited is barred from carrying on non-banking financial institution business going forward. Customers, counterparties, and anyone dealing with the company should no longer expect it to operate as an NBFC.
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
- Order Date
- 11 Feb 2008
- Effective From
- 11 Feb 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC