Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Nov 2007
Case Brief
On November 5, 2007, the Reserve Bank of India cancelled the certificate of registration granted to M/s. V.P.Fincap Private Limited, New Delhi, whose registered office was at C-131, SFS Flats, Sector-19, Rohini, New Delhi-110085. The cancellation was issued under Section 45-IA(6) of the Reserve Bank of India Act, 1934, in relation to its authority to carry on the business of a non-banking financial institution. As a result, the company cannot transact NBFC business anymore.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to M/s. V.P.Fincap Private Limited, New Delhi, which had been authorised to carry on the business of a non-banking financial institution. The release cites Section 45-IA(6) of the Reserve Bank of India Act, 1934 as the statutory basis for cancelling the registration certificate.
Operating Impact
The company is prohibited from carrying on the business of a non-banking financial institution after the cancellation takes effect. This directly affects the entity and any counterparties relying on its NBFC operations.
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
- 5 Nov 2007
- Effective From
- 5 Nov 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC