Recorded RBI impact
Monetary penalty
Monetary penalty · Fresh imposition
Published by RBI
7 Apr 2016
Case Brief
RBI imposed a monetary penalty on M/s Sun Corporate Services Pvt. Ltd. (presently known as M/s Mamata Group Corporate Services Pvt. Ltd.), based in Ahmedabad, Gujarat, under section 58-G of the RBI Act, 1934. The company was found to have violated RBI instructions by making overseas investment without obtaining the required No Objection Certificate and by seeking a change of name from the Registrar of Companies without prior RBI permission.
Why RBI Acted
The Reserve Bank of India imposed a monetary penalty under section 58-G of the RBI Act, 1934. The company violated the Bank's instructions dated June 14, 2011 by making overseas investment without obtaining a No Objection Certificate from RBI, and also breached the circular dated January 13, 2000 by approaching the Registrar of Companies for a change of name without prior RBI permission.
Operating Impact
The company must absorb the monetary penalty; the release does not describe any ongoing business restriction or operational ban. The violations relate to overseas investment approvals and compliance with RBI permission requirements for name change, but no forward-looking restriction beyond the fine is stated.
Regulatory Basis
- section 58-G of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Monetary penalty
- Entities Affected
- 1
- Entity Role
- Bulk Member
- Entity Type
- Other
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