Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
23 Sept 2009
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of four companies engaged in non-banking financial business: M/s. Peet Investment Private Limited, M/s. Parshuram Capital Services Limited, M/s. Changia Credit and Investment Private Limited, and M/s. Kaushambhi Finvest Lease Company Limited. The action was taken under Section 45-IA(6) of the RBI Act, 1934. The release says that once the registration certificate is cancelled, the companies cannot transact 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 under Section 45-IA(6) of the RBI Act, 1934. The release states that the companies had been granted registration certificates for carrying on the business of a non-banking financial institution, and that following cancellation they cannot transact the business of a non-banking financial institution.
Operating Impact
These four companies are barred from carrying on NBFC business after the cancellation takes effect. Customers and counterparties can no longer deal with them as registered non-banking financial institutions; the order affects all four entities named in the release.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I(a) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 10 Aug 1998
- Effective From
- 21 Aug 2009
- Entities Affected
- 4
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s. Parshuram Capital Services Limited