Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
18 May 2004
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Investment Trust of India Limited, Chennai, on 7 May 2004. RBI said the company had opted to exit from the business of a non-banking financial institution. The cancellation was made under Section 45IA(6) of the RBI Act, 1934, which allows RBI to cancel the registration certificate of an NBFC. Following the cancellation, the company cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration issued to Investment Trust of India Limited, Chennai, on 7 May 2004. The release states that the company had opted to exit from the business of a non-banking financial institution. The cancellation was issued under Section 45IA(6) of the RBI Act, 1934, which empowers RBI to cancel the registration certificate of an NBFC.
Operating Impact
Investment Trust of India Limited is no longer permitted to carry on NBFC business. The restriction affects the company directly and means it must cease NBFC operations after the cancellation takes effect. There is no monetary penalty mentioned.
Regulatory Basis
- Section 45IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 7 May 2004
- Effective From
- 7 May 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC