Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
30 Nov 2007
Case Brief
On November 12, 2007, the Reserve Bank of India cancelled the Certificate of Registration of M/s. Siddharthnagar Finstock Private Limited (U.P.), whose registered office is at Damoriyaganj, District-Siddharthnagar. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934, and it means the company cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to M/s. Siddharthnagar Finstock Private Limited (U.P.) under Section 45-IA(6) of the RBI Act, 1934. The company had been authorised to carry on the business of a non-banking financial institution, and the release states that after cancellation it cannot transact that business.
Operating Impact
The entity is barred from carrying on NBFC business going forward. Customers and counterparties should not treat it as authorised to transact non-banking financial institution business after the cancellation date.
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
- 12 Nov 2007
- Effective From
- 12 Nov 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC