Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
8 Jun 2005
Case Brief
On April 12, 2005, the Reserve Bank of India cancelled the certificate of registration of J. S. Sethi Finance & Investment Pvt. Ltd., Haldwani, under Section 45IA of the RBI Act, 1934. As a result, the company can no longer carry on the business of a non-banking financial institution. RBI also prohibited the company from accepting deposits and from alienating its assets under Section 45MB.
Why RBI Acted
The Reserve Bank cancelled the certificate of registration granted to J. S. Sethi Finance & Investment Pvt. Ltd. under Section 45IA of the RBI Act, 1934, for carrying on the business of a non-banking financial institution. Consequent to the cancellation, the company cannot transact NBFC business and was additionally prohibited under Section 45MB(1) from accepting deposits and under Section 45MB(2) from alienating its assets.
Operating Impact
The company must stop NBFC operations and cannot accept fresh deposits or transfer/encumber assets. The action directly affects the company and limits its dealings with depositors and counterparties going forward.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
- Section 45MB (1)
- Section 45MB (2)
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 12 Apr 2005
- Effective From
- 12 Apr 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC