Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
8 Apr 2005
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration issued to M/s. Santosh Securities Limited, whose registered office was in Ahmedabad. The cancellation was made on April 4, 2005 under Section 45IA of the RBI Act, 1934, in relation to its authorisation to carry on the business of a non-banking financial institution. This is a licensing action that removes the company's permission to operate as an NBFC under the cancelled registration.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to M/s. Santosh Securities Limited under Section 45IA of the RBI Act, 1934. The release states that the company was registered to carry on the business of a non-banking financial institution, and RBI has the power to cancel the registration certificate of a non-banking financial company under this provision.
Operating Impact
M/s. Santosh Securities Limited loses its RBI registration to conduct non-banking financial institution business. The company must stop operating under that Certificate of Registration, and counterparties/customers should no longer treat it as an authorised NBFC under the cancelled licence. The action takes effect from April 4, 2005.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
- clause (a) of Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 4 Apr 2005
- Effective From
- 4 Apr 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC