Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
21 Apr 2008
Case Brief
On March 18, 2008, the Reserve Bank of India cancelled the certificate of registration of M/s. Sahil Financial Services Ltd., whose registered office was in Mayur Vihar Phase I, Delhi. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934, for a company carrying on the business of a non-banking financial institution. Following the cancellation, the company is not permitted to transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to M/s. Sahil Financial Services Ltd. under Section 45-IA(6) of the RBI Act, 1934. The company was registered to carry on the business of a non-banking financial institution, and the release states that after cancellation it cannot transact that business.
Operating Impact
M/s. Sahil Financial Services Ltd. must stop carrying on non-banking financial institution business. The action removes its regulatory permission to operate as an NBFC, affecting its ability to conduct such business going forward.
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
- 18 Mar 2008
- Effective From
- 18 Mar 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC