Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
5 May 2010
Case Brief
On January 10, 2010, the Reserve Bank of India cancelled the Certificate of Registration of M/s. Lucky Valley Investments & Holdings Limited, whose registered office is in Bangalore. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934, because the company had opted to exit from the business of a non-banking financial institution. As a result, the company can no longer transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Lucky Valley Investments & Holdings Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit from the business of a non-banking financial institution, and following cancellation it cannot carry on NBFC business.
Operating Impact
The company is barred from carrying on non-banking financial institution activity after the cancellation. This has direct operational impact on the firm and removes its ability to continue NBFC operations going forward.
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
- 10 Jan 2010
- Effective From
- 10 Jan 2010
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC