Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Mar 2012
Case Brief
On January 17, 2012, the Reserve Bank of India cancelled the Certificate of Registration of LSP Finance Limited under Section 45-IA(6) of the RBI Act, 1934. The company, based in Chennai, had been registered to carry on the business of a non-banking financial institution. RBI cited supervisory grounds for the cancellation, and as a result the company is barred from transacting NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled Certificate of Registration No. 07.00353 dated November 6, 1998, issued to LSP Finance Limited, which had its registered office in Chennai. The stated basis was supervisory grounds. The cancellation was made under Section 45-IA(6) of the Reserve Bank of India Act, 1934, and means the company can no longer transact the business of a non-banking financial institution.
Operating Impact
LSP Finance Limited cannot continue or start non-banking financial institution business after the cancellation. The restriction directly affects the company’s operations and any counterparties relying on its NBFC activities.
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
- 17 Jan 2012
- Effective From
- 17 Jan 2012
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC