Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
10 Dec 2007
Case Brief
On November 19, 2007, the Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Evergrowing Iron and Finvest Limited, New Delhi, whose registered office was at 17, Jor Bagh, New Delhi-110013. The cancellation was issued under Section 45-IA(6) of the Reserve Bank of India Act, 1934, for carrying on the business of a non-banking financial institution. 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. Evergrowing Iron and Finvest Limited, New Delhi, under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had been registered for carrying on the business of a non-banking financial institution, and that following cancellation it cannot transact the business of a non-banking financial institution.
Operating Impact
The company must stop conducting non-banking financial institution business. Customers and counterparties should not expect it to operate as an NBFC after the cancellation, and any future activity would need to comply with the law and RBI requirements.
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
- 19 Nov 2007
- Effective From
- 19 Nov 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC