Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
20 Apr 2016
Case Brief
In a fresh enforcement action, RBI cancelled the Certificate of Registration of three NBFCs: M/s Shubh Leasing Private Limited, M/s Global Securities Limited, and M/s Amitosa Leasing & Finance Private Limited. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934. Following the cancellation, these entities are barred from transacting the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of three non-banking financial companies in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release lists M/s Shubh Leasing Private Limited, M/s Global Securities Limited, and M/s Amitosa Leasing & Finance Private Limited. As a result of the cancellation, these companies are no longer permitted to carry on the business of a non-banking financial institution as defined under Section 45-I(a) of the RBI Act, 1934.
Operating Impact
The three companies must stop carrying on NBFC activities and cannot accept or conduct business as non-banking financial institutions. This directly affects the companies and any counterparties relying on their NBFC operations.
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
- Effective From
- 28 Mar 2016
- Entities Affected
- 3
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Amitosa Leasing & Finance Private Limited