Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
9 May 2018
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of two NBFCs: M/s Kailash Ficom Limited (presently known as Mindvision Capital Limited) and M/s Goswamis Credits & Investment Private Limited (presently known as Goswamis Credits & Investment Ltd). The action was taken under Section 45-IA(6) of the RBI Act, 1934. Following the cancellation, the companies are prohibited from transacting the business of a non-banking financial institution under the RBI Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of two non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934: M/s Kailash Ficom Limited (presently known as Mindvision Capital Limited) and M/s Goswamis Credits & Investment Private Limited (presently known as Goswamis Credits & Investment Ltd). As a result, they are not permitted to transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Operating Impact
Both companies must stop carrying on NBFC business and cannot legally operate as non-banking financial institutions. Counterparties and customers should treat them as no longer registered NBFCs; the release does not specify any transition timeline or remediation window.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 23 Mar 2018
- Effective From
- 23 Mar 2018
- Entities Affected
- 2
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Kailash Ficom Limited (presently known as Mindvision Capital Limited)