Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
19 Feb 2010
Case Brief
The Reserve Bank of India cancelled the certificates of registration of three companies that were authorised to carry on non-banking financial institution business. The affected entities are M/s MRAL Securities & Finance Private Limited, M/s. Neminath Industries Private Limited, and M/s. Karmath Leasing & Holdings Limited, all based in New Delhi. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934. As a result, these companies 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 action was taken under Section 45-IA(6) of the RBI Act, 1934. The companies named are M/s MRAL Securities & Finance Private Limited, M/s. Neminath Industries Private Limited, and M/s. Karmath Leasing & Holdings Limited.
Operating Impact
The three companies must stop carrying on NBFC business immediately upon cancellation. Customers and counterparties can no longer treat them as registered NBFCs for regulated non-banking financial activities.
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
- 22 Jan 2010
- Entities Affected
- 3
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s. Karmath Leasing & Holdings Limited