Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
30 Nov 2017
Case Brief
The RBI cancelled the Certificate of Registration of two non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934: M/s GFL Financials India Limited and M/s Alagendran Finance Limited (presently M/s Sai Jeevadhara Finance Limited). The press release does not specify the underlying violations, but states that once the registration is cancelled, these companies cannot transact the business of a non-banking financial institution under Section 45-I(a) of the RBI Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of M/s GFL Financials India Limited and M/s Alagendran Finance Limited (presently M/s Sai Jeevadhara Finance Limited) under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release does not state the underlying factual breaches, only that the cancellations were ordered by RBI on October 18, 2017. Following cancellation, the companies are barred from carrying on the business of a non-banking financial institution under clause (a) of Section 45-I of the RBI Act, 1934.
Operating Impact
Both companies are prohibited from carrying on NBFC business after the cancellation of their CoR. Customers and counterparties should treat them as no longer authorized to operate as non-banking financial institutions.
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
- 18 Oct 2017
- Effective From
- 18 Oct 2017
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Alagendran Finance Limited (Presently M/s Sai Jeevadhara Finance Limited)