Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Jun 2007
Case Brief
On May 24, 2007, the Reserve Bank of India cancelled the Certificate of Registration of M/s. S & I International Private Limited, a non-banking financial company with its registered office in New Delhi. The cancellation was issued under Section 45-IA(6) of the Reserve Bank of India Act, 1934. Following this action, the company is not permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to M/s. S & I International Private Limited, which had been registered to carry on the business of a non-banking financial institution. The release states the cancellation was made under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As a result, the company cannot transact the business of a non-banking financial institution.
Operating Impact
The company must stop all activities that constitute the business of a non-banking financial institution. Customers, counterparties, and prospective borrowers would be unable to continue transacting with it in that regulated capacity.
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
- 24 May 2007
- Effective From
- 24 May 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC