Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
7 Oct 2009
Case Brief
The Reserve Bank of India, on 31 August 2009, cancelled the Certificate of Registration of M/s. San Components Limited, whose registered office was at Paharganj, New Delhi. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934 after the company voluntarily exited the business of a non-banking financial institution. After cancellation, the company cannot transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. San Components Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had voluntarily exited from the business of a non-banking financial institution, and therefore RBI cancelled its registration certificate. As a result, the company is no longer permitted to transact NBFC business.
Operating Impact
M/s. San Components Limited is barred from carrying on non-banking financial institution business after the cancellation of its registration. The restriction affects the company directly and prevents it from undertaking any NBFC operations 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
- 31 Aug 2009
- Effective From
- 31 Aug 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC