Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
14 Aug 2009
Case Brief
On July 14, 2009, the Reserve Bank of India cancelled the Certificate of Registration of M/s. Seven Heaven Leasing and Finance Limited, whose registered office was in Chembur, Mumbai. The cancellation was for carrying on the business of a non-banking financial institution and was stated to be because the company had opted to exit from that business. The action was taken under Section 45-IA(6) of the RBI Act, 1934.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Seven Heaven Leasing and Finance Limited for carrying on the business of a non-banking financial institution. The release states that the company had opted to exit from the business of a non-banking financial institution. The cancellation was exercised under Section 45-IA(6) of the RBI Act, 1934, and means the company can no longer transact NBFC business.
Operating Impact
The company is no longer permitted to transact the business of a non-banking financial institution. This removes its regulatory authority to operate as an NBFC, with the immediate consequence that NBFC-related activities must cease.
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
- 14 Jul 2009
- Effective From
- 14 Jul 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC