Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
6 Apr 2009
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s Penguin Credits & Securities Limited, whose registered office was at 321-S Chirag Delhi, New Delhi, on March 16, 2009. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the company is no longer permitted to transact the business of a non-banking financial institution.
Why RBI Acted
On March 16, 2009, RBI cancelled the Certificate of Registration granted to M/s Penguin Credits & Securities Limited under Section 45-IA(6) of the RBI Act, 1934. The release states the cancellation was for carrying on the business of a non-banking financial institution, and that after cancellation the company cannot transact that business.
Operating Impact
M/s Penguin Credits & Securities Limited must stop all non-banking financial institution activity. Customers and counterparties can no longer rely on it for NBFC services, and the cancellation has an immediate forward-looking operational impact.
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
- Order Date
- 16 Mar 2009
- Effective From
- 16 Mar 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC