Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Oct 2009
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of three companies—M/s. Leasement Investo (India) Limited, M/s. Khemsons Global Limited, and M/s. Rex Financial Services Private Limited—each registered to carry on the business of a non-banking financial institution. The release says that once the registration certificate is cancelled, the companies cannot transact the business of a non-banking financial institution. RBI cites its power under Section 45-IA(6) of the Reserve Bank of India Act, 1934.
Why RBI Acted
The Reserve Bank of India cancelled the certificates of registration granted to three companies for carrying on the business of a non-banking financial institution. The release states that, following cancellation, the companies cannot transact the business of a non-banking financial institution. The action is taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934.
Operating Impact
The three companies are prohibited from carrying on non-banking financial institution business going forward. This directly affects the firms’ ability to operate as NBFCs and any customers or counterparties relying on those services.
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
- 2 Sept 2009
- Entities Affected
- 3
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s. Rex Financial Services Private Limited