Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
9 Jun 2008
Case Brief
The Reserve Bank of India on May 20, 2008 cancelled the Certificate of Registration granted to M/s. M.S. Finvest Limited (presently known as Mukesh Udyog Limited), whose registered office was in Ludhiana, Punjab. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934. As a result, the company cannot 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. M.S. Finvest Limited (presently known as Mukesh Udyog Limited) under Section 45-IA(6) of the RBI Act, 1934. The action was taken in connection with the company’s authority to carry on the business of a non-banking financial institution, and the release states that after cancellation it cannot transact NBFC business.
Operating Impact
The company is barred from carrying on NBFC activities going forward. This affects the entity directly and removes its ability to operate in its registered financial business segment.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I(a) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 20 May 2008
- Effective From
- 20 May 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC