Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
28 Jan 2016
Case Brief
The Reserve Bank of India imposed a monetary penalty on M/s Laxman Leafin Ltd, Hyderabad, a registered non-banking financial company. The penalty was levied under section 58-G(1) read with section 58-B(5)(aa) of the RBI Act, 1934 for violating RBI directions on issuance of non-convertible debentures and on acceptance of public deposits. The release adds that the company redeemed all debentures by March 31, 2015.
Why RBI Acted
RBI imposed a monetary penalty under section 58-G(1) read with section 58-B(5)(aa) of the RBI Act, 1934 for violation of the RBI's Issuance of Non-Convertible Debentures Directions, 2010 and Financial Companies Acceptance of Public Deposits Directions, as amended. The release also notes that the company redeemed all debentures by March 31, 2015.
Operating Impact
The company must absorb the monetary penalty; no operational restriction is described in the release. The action concerns past compliance with RBI directions and does not indicate any continuing curbs on business activities.
Regulatory Basis
- section 58-G(1) read with sub section 5(aa) of section 58-B of the RBI Act,1934
Action Facts
- Primary Impact
- Fine: Rs 2.00 L
- Order Date
- 27 Jun 2013
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC