Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
8 Apr 2009
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of M/s Dhanaprayog Investments Company Limited (presently Westlife Development Limited) with effect from February 13, 2009. The company was registered to carry on the business of a non-banking financial institution, but it opted to exit that business. RBI exercised its powers under Section 45-IA(6) of the RBI Act, 1934. Following the cancellation, the company is not permitted to transact the business of a non-banking financial institution.
Why RBI Acted
On February 13, 2009, RBI cancelled the Certificate of Registration granted to M/s Dhanaprayog Investments Company Limited (presently Westlife Development Limited) under Section 45-IA(6) of the RBI Act, 1934. The stated reason is that the company had opted to exit from the business of a non-banking financial institution. As a result of the cancellation, the company can no longer transact the business of a non-banking financial institution.
Operating Impact
The company cannot carry on NBFC business after the cancellation. Any related non-banking financial institution operations must stop, and counterparties should treat the firm as no longer registered for that activity.
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
- 13 Feb 2009
- Effective From
- 13 Feb 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC