Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
12 Jun 2007
Case Brief
On May 14, 2007, the Reserve Bank of India cancelled the Certificate of Registration of M/s. Sigma Capital Finance Private Limited, which had its registered office in New Delhi. The company had opted to exit the non-banking financial institution business. The cancellation was issued under Section 45-IA(6) of the Reserve Bank of India Act, 1934, and means the company can no longer carry on or 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. Sigma Capital Finance Private Limited for carrying on business as 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 issued under Section 45-IA(6) of the Reserve Bank of India Act, 1934.
Operating Impact
M/s. Sigma Capital Finance Private Limited is barred from carrying on the business of a non-banking financial institution after the cancellation takes effect. The action affects the company directly and removes its ability to operate as an NBFC; no monetary penalty is involved.
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 May 2007
- Effective From
- 14 May 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC