Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
31 Jan 2006
Case Brief
On December 27, 2005, the Reserve Bank of India cancelled the certificate of registration of Fantasy Securities Private Limited, whose registered office is in Kanpur, Uttar Pradesh. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934, for the company’s non-banking financial institution business. As a result, Fantasy Securities Private Limited cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to Fantasy Securities Private Limited, Kanpur, under Section 45-IA(6) of the RBI Act, 1934. The release states that the company was registered to carry on the business of a non-banking financial institution, and following cancellation it cannot transact that business.
Operating Impact
Fantasy Securities Private Limited is prohibited from continuing its non-banking financial institution business after the cancellation. Customers and counterparties should treat the firm as unable to operate as an RBI-registered NBFC, effective from the cancellation date, December 27, 2005.
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
- 27 Dec 2005
- Effective From
- 27 Dec 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC