Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
12 Feb 2008
Case Brief
On January 15, 2008, the Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Syal Finance Limited, whose registered office is at S.C.F. No. 37, Urban Estate, Phase 1, Jalandhar. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934. As a result, the entity is no longer permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to M/s. Syal Finance Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had been registered to carry on the business of a non-banking financial institution and, following cancellation, it cannot transact that business.
Operating Impact
M/s. Syal Finance Limited must stop carrying on non-banking financial institution business. The restriction has immediate operational effect and affects the company directly; customers/counterparties relying on NBFC services can no longer transact with it in that capacity.
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
- 15 Jan 2008
- Effective From
- 15 Jan 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC