Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
26 Jun 2008
Case Brief
On June 02, 2008, the Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Fortis Financial Services Limited, whose registered office was in New Delhi, under Section 45-IA(6) of the RBI Act, 1934. The cancellation means the company is no longer permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration of M/s. Fortis Financial Services Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company was registered to carry on the business of a non-banking financial institution, and that after cancellation it cannot transact such business.
Operating Impact
M/s. Fortis Financial Services Limited loses its authorization to operate as a non-banking financial institution from the cancellation date. The firm must cease NBFC business activity, and customers/counterparties can no longer rely on it to conduct regulated non-banking financial institution operations.
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
- 2 Jun 2008
- Effective From
- 2 Jun 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC