Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
23 Sept 2008
Case Brief
On August 7, 2008, the Reserve Bank of India cancelled the certificate of registration of M/s. Chartered Finance Management Limited, whose registered office was in Mumbai. The company had been carrying on the business of a non-banking financial institution but had opted to exit that business. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934. As a result, the company cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to M/s. Chartered Finance Management Limited, which was carrying on the business of a non-banking financial institution. The release states that the company had opted to exit from the non-banking financial institution business. The cancellation was issued under Section 45-IA(6) of the Reserve Bank of India Act, 1934, after which the company can no longer transact the business of a non-banking financial institution.
Operating Impact
The company loses its ability to operate as a non-banking financial institution with immediate effect from the cancellation date. This affects the entity directly and prevents it from undertaking NBFC business going forward.
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
- 7 Aug 2008
- Effective From
- 7 Aug 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC