Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
28 Jun 2016
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of two non-banking financial companies: M/s Sampada Chemicals Limited and M/s Saakshi Securities Limited. The action was taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934. Following the cancellation, the companies are barred from transacting the business of a non-banking financial institution as defined under clause (a) of Section 45-I of the Act.
Why RBI Acted
RBI cancelled the CoR of M/s Sampada Chemicals Limited and M/s Saakshi Securities Limited in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As a result, the companies can no longer transact the business of a non-banking financial institution under clause (a) of Section 45-I of the Act.
Operating Impact
The two NBFCs must stop carrying on NBFC business. Customers and counterparties should expect that the entities can no longer legally operate as non-banking financial institutions after the cancellation dates stated in the release.
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
- 25 Mar 2016
- Effective From
- 25 Mar 2016
- Entities Affected
- 2
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Sampada Chemicals Limited