Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
6 Apr 2010
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Jayant Mercantile Company Limited, Mumbai, on January 25, 2010. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934, because the company had opted to exit the business of a non-banking financial institution. As a result, the company is no longer permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Jayant Mercantile Company Limited 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. After cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
Jayant Mercantile Company Limited can no longer carry on NBFC business. The restriction is permanent unless a fresh regulatory approval is obtained through a new process, and it directly affects the company’s ability to accept or conduct NBFC transactions.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 25 Jan 2010
- Effective From
- 25 Jan 2010
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC