Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
8 Sept 2016
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of five non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The companies named in the release include Simco Consultants Private Limited, Lunkad Securities Ltd, Rajvir Marketing and Investment Private Limited, Crystal Investments Limited, and Shri Jaya Investments Agency Limited. The release states that, following cancellation, these companies cannot transact the business of a non-banking financial institution under Section 45-I(a) of the Act.
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934 to cancel the Certificates of Registration of five NBFCs. The release lists the affected companies and states that, as a result, they cannot transact the business of a non-banking financial institution as laid down under clause (a) of Section 45-I of the RBI Act, 1934.
Operating Impact
The five named companies are barred from carrying on NBFC business after cancellation of their registrations. Any NBFC activity undertaken by them would no longer be permitted, and counterparties or customers should not treat them as registered NBFCs.
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
- Entities Affected
- 5
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Lunkad Securities Ltd