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M/s Smita Commercial Investment Limited

NBFCNew Delhi, Delhi

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

License cancellation

License cancellation · Fresh imposition

S5

Published by RBI

13 Apr 2009

Case Brief

The Reserve Bank of India cancelled the Certificate of Registration of eight non-banking financial companies with registered offices in Delhi/New Delhi. The action was taken under Section 45-IA(6) of the RBI Act, 1934. Following the cancellation, these companies cannot transact the business of a non-banking financial institution.

Why RBI Acted

Licensing breach

The Reserve Bank of India cancelled the certificate of registration granted to eight companies carrying on the business of a non-banking financial institution. The release states that, following cancellation of the registration certificate, the companies cannot transact NBFC business. The cancellation is made under Section 45-IA(6) of the RBI Act, 1934.

Operating Impact

All eight companies lose their RBI registration and must stop NBFC საქმიანity immediately. Customers and counterparties can no longer deal with them as regulated NBFCs for new business.

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
Effective From
17 Mar 2009
Entities Affected
8
Entity Role
Bulk Member
Entity Type
NBFC

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