Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
1 Apr 2010
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of M/s. Bholanath Khanna & Company Private Limited and M/s. Sunny Finlease Private Limited, both registered in New Delhi, for carrying on the business of a non-banking financial institution. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the companies are no longer permitted to transact the business of an NBFC.
Why RBI Acted
The Reserve Bank of India cancelled the certificates of registration granted to M/s. Bholanath Khanna & Company Private Limited and M/s. Sunny Finlease Private Limited, under Section 45-IA(6) of the RBI Act, 1934. The release states that following cancellation of the registration certificate, the companies cannot carry on the business of a non-banking financial institution.
Operating Impact
Both companies must stop NBFC operations immediately and cannot legally undertake non-banking financial institution business going forward. The restriction directly affects the firms and any customers or counterparties relying on their 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
- Effective From
- 9 Feb 2010
- Entities Affected
- 2
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to M/s. Bholanath Khanna & Company Private Limited