Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
23 Jun 2009
Case Brief
The Reserve Bank of India cancelled the certificates of registration of three companies: M/s Goyal Textiles Industries Private Limited, M/s J.D.C. Estate Developers Limited, and M/s Motivational Securities Private Limited. The action was taken under Section 45-IA(6) of the RBI Act, 1934. Following cancellation, these entities cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificates of registration granted to three companies for carrying on the business of a non-banking financial institution. The release states that, under Section 45-IA(6) of the RBI Act, 1934, RBI has the power to cancel the registration certificate of a non-banking financial company. After cancellation, the companies cannot transact the business of a non-banking financial institution.
Operating Impact
All three companies are barred from carrying on non-banking financial institution business going forward. Customers and counterparties should not treat them as authorised NBFCs for new business, and any regulated activities requiring CoR are no longer permitted. The cancellation took effect on June 01, 2009 for each company.
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
- Effective From
- 1 Jun 2009
- Entities Affected
- 3
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Goyal Textiles Industries Private Limited