Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
23 Sept 2016
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of two non-banking financial companies: M/s S.P. Global Finance and Investment Private Limited and M/s Skylark Deposit and Advances Limited. The action was taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934. With the cancellation in force, the companies are no longer permitted to transact the business of a non-banking financial institution under Section 45-IA of the Act.
Why RBI Acted
The RBI cancelled the certificate of registration of M/s S.P. Global Finance and Investment Private Limited and M/s Skylark Deposit and Advances Limited in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release states that, following cancellation, the companies cannot transact the business of a non-banking financial institution as laid down under Section 45-IA(a) of the Act.
Operating Impact
Both NBFCs are barred from continuing non-banking financial business. Customers and counterparties should treat them as no longer authorised to operate as NBFCs under RBI registration.
Regulatory Basis
- Section 45-IA(6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 5 Aug 2016
- Effective From
- 5 Aug 2016
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Skylark Deposit and Advances Limited