Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
17 Aug 2009
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of M/s. Sargam Capital Limited, Surat, on July 15, 2009. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934 after the company opted to exit from the business of a non-banking financial institution. With the registration cancelled, the company cannot carry on or transact the business of a non-banking financial institution.
Why RBI Acted
On July 15, 2009, RBI cancelled the Certificate of Registration granted to M/s. Sargam Capital Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit from the business of a non-banking financial institution, and therefore the registration was cancelled. As a result, the company can no longer transact the business of a non-banking financial institution.
Operating Impact
M/s. Sargam Capital Limited is no longer permitted to operate as a non-banking financial institution. The restriction affects the company alone and means it cannot undertake NBFC business going forward.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 15 Jul 2009
- Effective From
- 15 Jul 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC