Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
23 Jun 2005
Case Brief
On June 20, 2005, the Reserve Bank of India cancelled the Certificate of Registration issued to GSL Capital Limited, whose registered office is in Secunderabad, 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 an NBFC.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration issued to GSL Capital Limited, Secunderabad, under Section 45IA of the Reserve Bank of India Act, 1934. The release states that the company had been registered for carrying on the business of a non-banking financial institution, and RBI has the power under Section 45IA to cancel the registration certificate of a non-banking financial company.
Operating Impact
GSL Capital Limited cannot continue operating as a registered non-banking financial company unless it obtains the necessary regulatory relief or a fresh authorization, if applicable. The cancellation affects the company directly and signals that its NBFC business is no longer permitted under the cancelled registration.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 20 Jun 2005
- Effective From
- 20 Jun 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC