Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
14 Jun 2010
Case Brief
On May 12, 2010, the Reserve Bank of India cancelled the Certificate of Registration of KLS Finance and Investments Limited, which had its registered office at KLS Complex, Bellary Road, Hospet 583201. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934. RBI stated that the company had opted to exit from the business of a non-banking financial institution, and therefore its registration was cancelled.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to KLS Finance and Investments Limited under Section 45-IA(6) of the RBI Act, 1934. The company had its registered office at KLS Complex, Bellary Road, Hospet, and the stated reason was that it had opted to exit from the non-banking financial business. As a result, it can no longer transact business as a non-banking financial institution.
Operating Impact
KLS Finance and Investments Limited can no longer carry on or transact non-banking financial institution business. The restriction is permanent unless the company obtains fresh regulatory approval through the applicable legal process.
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
- 12 May 2010
- Effective From
- 12 May 2010
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC