Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
13 Nov 2007
Case Brief
On October 29, 2007, the Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Malwa Mercantile Limited, New Delhi, which had its registered office at M-53, II Floor, M Block Market, Greater Kailash, New Delhi-110048. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934 for carrying on the business of a non-banking financial institution. The release makes clear that, after cancellation, 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. Malwa Mercantile Limited, New Delhi under Section 45-IA(6) of the RBI Act, 1934. The certificate had been issued for carrying on the business of a non-banking financial institution, and the release states that following cancellation, the company cannot transact that business.
Operating Impact
M/s. Malwa Mercantile Limited is barred from carrying on non-banking financial institution business from the date of cancellation. Customers and counterparties should not treat it as authorised to conduct NBFC activity; any such activity would be outside RBI registration.
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
- 29 Oct 2007
- Effective From
- 29 Oct 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC