Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Jun 2007
Case Brief
On May 18, 2007, the Reserve Bank of India cancelled the Certificate of Registration granted to M/s. KVF Securities Private Limited, whose registered office is at Mahatta Towers, Janakpuri, New Delhi. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934. As a result, the company is no longer permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. KVF Securities Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company was registered to carry on the business of a non-banking financial institution, and after cancellation it can no longer transact that business.
Operating Impact
M/s. KVF Securities Private Limited must stop NBFC business operations immediately and cannot legally transact as a non-banking financial institution. The restriction directly affects the company and any customers or counterparties relying on its NBFC services.
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
- Order Date
- 18 May 2007
- Effective From
- 18 May 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC