Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
23 Jul 2007
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of M/s. H.S. Sidhu Financiers Private Limited, Gurgaon, Haryana, on July 03, 2007. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934, after the company opted to exit the business of a non-banking financial institution. With the registration cancelled, the company is no longer permitted to transact NBFC business.
Why RBI Acted
On July 03, 2007, RBI cancelled the Certificate of Registration granted to M/s. H.S. Sidhu Financiers Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit from the business of a non-banking financial institution, and as a result the registration was cancelled. After cancellation, the company cannot transact NBFC business.
Operating Impact
The company must stop carrying on non-banking financial institution business. Customers and counterparties cannot be served as an NBFC going forward, and the entity loses its RBI registration to operate in this line of business.
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
- 3 Jul 2007
- Effective From
- 3 Jul 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC