Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
5 Jun 2009
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Jaybeear Investments and Finance Private Limited, whose registered office was in Bangalore, under Section 45-IA(6) of the RBI Act, 1934. The stated reason was that the company had opted to exit the business of a non-banking financial institution. Following the cancellation, the company is no longer permitted to carry on that business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Jaybeear Investments and Finance Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the cancellation was because the company opted to exit from the business of a non-banking financial institution. As a result, the company cannot transact the business of a non-banking financial institution.
Operating Impact
The company must stop transacting the business of a non-banking financial institution. This removes its regulatory authorization to operate as an NBFC and affects its ability to conduct any NBFC business going forward.
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
- 5 May 2009
- Effective From
- 5 May 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC