Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
4 Aug 2010
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of M/s. Sahil Securities Limited and M/s Jai Mata Pipes Private Limited, both registered to carry on the business of a non-banking financial institution. The action was taken under Section 45-IA(6) of the RBI Act, 1934. Once the registration certificate is cancelled, the companies are not permitted to transact NBFC business. The cancellation dates mentioned in the release are July 2, 2010 and July 6, 2010.
Why RBI Acted
The Reserve Bank of India cancelled the certificates of registration granted to M/s. Sahil Securities Limited and M/s Jai Mata Pipes Private Limited under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release states that, following cancellation of the registration certificate, the companies cannot carry on the business of a non-banking financial institution, with cancellation dates of July 2, 2010 and July 6, 2010 respectively.
Operating Impact
Both companies are barred from conducting non-banking financial institution business going forward. Customers and counterparties should not treat them as authorised NBFCs after the cancellation dates stated in the release.
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
- 2 Jul 2010
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Jai Mata Pipes Private Limited