Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
9 Nov 2005
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration issued to Karvy Consultants Limited, Hyderabad, under Section 45-IA of the Reserve Bank of India Act, 1934. The order relates to the company’s authority to carry on the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to Karvy Consultants Limited, Hyderabad, for carrying on the business of a non-banking financial institution. The release cites Section 45-IA of the Reserve Bank of India Act, 1934, which empowers RBI to cancel the registration certificate of a non-banking financial company.
Operating Impact
Karvy Consultants Limited can no longer operate as a non-banking financial institution under the cancelled registration. Any NBFC-related business conducted under that certificate must cease, subject to any further legal or regulatory process.
Regulatory Basis
- Section 45-IA 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
- 2 Nov 2005
- Effective From
- 2 Nov 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC