Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
11 Dec 2009
Case Brief
On December 01, 2009, the Reserve Bank of India cancelled the Certificate of Registration of M/s. Network 18 Media & Investments Limited, whose registered office was in New Delhi. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934, because the company had voluntarily exited the business of a non-banking financial institution. Following the cancellation, the company is not permitted to conduct NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Network 18 Media & Investments Limited under Section 45-IA(6) of the RBI Act, 1934. The stated reason was that the company had voluntarily exited from the business of a non-banking financial institution. As a result, it is no longer permitted to carry on NBFC business.
Operating Impact
The company is barred from transacting the business of a non-banking financial institution going forward. This affects the entity directly and removes its ability to operate as an NBFC; no customer-facing NBFC activities can continue under the cancelled registration.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 1 Dec 2009
- Effective From
- 1 Dec 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC