Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
2 Feb 2005
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Flair Investment and Finance Limited, Hyderabad, on January 20, 2005. The cancellation was issued under Section 45IA of the RBI Act, 1934, in respect of the company’s business as a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to Flair Investment and Finance Limited, Hyderabad, for carrying on the business of a non-banking financial institution. The action was taken under Section 45IA of the Reserve Bank of India Act, 1934, which empowers RBI to cancel the registration certificate of a non-banking financial company.
Operating Impact
Flair Investment and Finance Limited loses its authorization to operate as a non-banking financial institution. It must cease any regulated NBFC business, and counterparties relying on its NBFC status are affected; the release does not specify any remedial deadline.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 20 Jan 2005
- Effective From
- 20 Jan 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC