Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
8 Feb 2016
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of four non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The companies named are M/s. Goyal Commercial Pvt. Ltd., M/s. First Debt Management Co. of India Ltd., M/s. Nostalgia Finvest Private Limited, and M/s Narad Realtors Private Limited. The release cites the statutory power used but does not describe the underlying conduct or violations. Following cancellation, these entities are barred from transacting the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of four non-banking financial companies in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release lists the companies and their registration details, but does not specify the factual grounds for cancellation beyond the statutory basis for the action.
Operating Impact
The four named companies are no longer permitted to operate as NBFCs or conduct non-banking financial institution business. This directly affects their ability to originate or carry on NBFC activities and informs counterparties and customers that the companies cannot continue that line of business.
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
- Effective From
- 13 Nov 2015
- Entities Affected
- 4
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s. Nostalgia Finvest Private Limited