Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
30 Nov 2004
Case Brief
The Reserve Bank of India cancelled the certificate of registration of M/s Metrochem Capital Trust Limited, Ahmedabad, on November 27, 2004. The cancellation was made under Section 45-IA of the RBI Act, 1934. Following this action, 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 Metrochem Capital Trust Limited, Ahmedabad, on November 27, 2004. The action was taken under Section 45-IA of the RBI Act, 1934, which empowers RBI to cancel the registration certificate of a non-banking financial company. As a result, the company is no longer permitted to carry on the business of a non-banking financial institution.
Operating Impact
M/s Metrochem Capital Trust Limited must stop conducting non-banking financial institution activities. Customers and counterparties can no longer rely on it operating as an NBFC after the cancellation date.
Regulatory Basis
- Section 45-IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 27 Nov 2004
- Effective From
- 27 Nov 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC