Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
29 Dec 2009
Case Brief
In this release, the Reserve Bank of India cancelled the Certificates of Registration of six companies that were carrying on the business of a non-banking financial institution. The affected entities are Smart Investments & Finance Limited, Satopath Finance Limited, Shriya Trading & Finance Private Limited, Authentic Investments & Finance Limited, Bakhru Investments & Leasing Limited, and Sneh Finlease Limited. The release cites Section 45-IA(6) of the Reserve Bank of India Act, 1934 as the statutory basis for cancellation. Once cancelled, the companies cannot transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the certificates of registration granted to six companies for carrying on the business of a non-banking financial institution. The notice states that, under Section 45-IA(6) of the RBI Act, 1934, RBI has the power to cancel the registration certificate of an NBFC. Following cancellation, the companies are no longer permitted to conduct NBFC business.
Operating Impact
All six companies lose their authority to operate as non-banking financial institutions and must stop conducting NBFC business. Any customers/counterparties dealing with them as NBFCs are affected by the cessation of that regulated activity.
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
- 23 Oct 2009
- Entities Affected
- 6
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to M/s. Smart Investments & Finance Limited
M/s. Authentic Investments & Finance Limited
NBFC
1 shared action
1 restriction
M/s. Bakhru Investments & Leasing Limited
NBFC
1 shared action
1 restriction
M/s. Satopath Finance Limited
NBFC
1 shared action
1 restriction
M/s. Shriya Trading & Finance Private Limited
NBFC
1 shared action
1 restriction
M/s. Sneh Finlease Limited
NBFC
1 shared action
1 restriction