Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
27 Jul 2006
Case Brief
On June 22, 2006, the Reserve Bank of India cancelled the Certificate of Registration granted to Ispat Finance Limited, Kolkata, under Section 45-IA(6) of the RBI Act, 1934. The release says the company had opted to exit the business of a non-banking financial institution. Following the cancellation, the company cannot carry on or transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Ispat Finance Limited, Kolkata under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit from the business of a non-banking financial institution, and therefore its registration was cancelled. As a result, it cannot transact the business of a non-banking financial institution.
Operating Impact
Ispat Finance Limited can no longer operate as a non-banking financial institution. The restriction is immediate upon cancellation, and the company must cease NBFC business activities.
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
- 22 Jun 2006
- Effective From
- 22 Jun 2006
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC