Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
5 Feb 2008
Case Brief
On December 28, 2007, the Reserve Bank of India cancelled the Certificate of Registration granted to Gangeet Securities Limited, whose registered office was in Hyderabad. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934, in relation to the company’s authority to carry on the business of a non-banking financial institution. As a result, Gangeet Securities Limited is no longer permitted to transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Gangeet Securities Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had been registered to carry on the business of a non-banking financial institution, and that following cancellation it cannot transact NBFC business.
Operating Impact
Gangeet Securities Limited loses its RBI registration and must stop carrying on non-banking financial institution business. The restriction directly affects the company’s ability to operate as an NBFC and applies from the cancellation date.
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
- 28 Dec 2007
- Effective From
- 28 Dec 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC