Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
11 Aug 2009
Case Brief
On July 20, 2009, the Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Sugandh Finvest Pvt. Ltd., whose registered office was in New Delhi, for carrying on the business of a non-banking financial institution. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the company is no longer permitted to transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Sugandh Finvest Pvt. Ltd. under Section 45-IA(6) of the RBI Act, 1934. The release states that, following cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
M/s. Sugandh Finvest Pvt. Ltd. must stop carrying on non-banking financial institution activities. Counterparties and customers can no longer rely on the company to conduct NBFC business after the cancellation date, July 20, 2009.
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
- 20 Jul 2009
- Effective From
- 20 Jul 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC