Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
1 Jan 2010
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of M/s. Bina Finance Limited and M/s. Sunflower Securities Private Limited, both registered as non-banking financial companies. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the companies are no longer permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificates of registration granted to two non-banking financial companies: M/s. Bina Finance Limited and M/s. Sunflower Securities Private Limited. The release states that the cancellation was made under Section 45-IA(6) of the Reserve Bank of India Act, 1934, and notes that, following cancellation, the companies cannot transact the business of a non-banking financial institution as defined in Section 45-I(a) of the Act.
Operating Impact
Both companies must stop carrying on non-banking financial institution business. The cancellation takes away their ability to operate as NBFCs, affecting their business operations and any counterparties dealing with them as financial institutions.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Effective From
- 14 Dec 2009
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s. Sunflower Securities Private Limited