Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
26 Jul 2016
Case Brief
The Reserve Bank of India said two NBFCs surrendered their Certificates of Registration, and RBI accordingly cancelled the CoRs under Section 45-IA(6) of the RBI Act, 1934. The entities listed are M/s Fedder Tieup Private Limited (presently Savi Media World Limited) and M/s High Seas Traders Private Limited, both based in Kolkata. Following cancellation, they cannot transact the business of a non-banking financial institution as defined under the RBI Act.
Why RBI Acted
RBI stated that the listed NBFCs surrendered the Certificate of Registration granted to them, and therefore, in exercise of powers under Section 45-IA(6) of the RBI Act, 1934, cancelled their CoR. The release expressly says the companies cannot transact the business of a Non-Banking Financial Institution under Section 45-I(a) of the RBI Act.
Operating Impact
The two companies lose authorization to operate as NBFCs and must stop any business that requires a valid Certificate of Registration. This affects their ability to undertake non-banking financial institution activities going forward.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I(a) of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 13 Jun 2016
- Effective From
- 13 Jun 2016
- Entities Affected
- 2
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Fedder Tieup Private Limited (Presently Savi Media World Limited)