Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
15 Jan 2010
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of three non-banking financial companies: M/s. Vishamber Sahai Financiers Private Limited, M/s. SSK Holdings Private Limited, and M/s. DLF Financial Services Limited. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, these companies cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificates of Registration granted to three companies for carrying on the business of a non-banking financial institution, invoking Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release states that following cancellation of the registration certificate, the companies cannot transact the business of a non-banking financial institution.
Operating Impact
The three named companies are barred from carrying on non-banking financial business going forward. Customers and counterparties should no longer treat them as authorised NBFCs for new transactions, and any regulated activity requiring an NBFC registration is prohibited from the cancellation date onward.
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
- Entities Affected
- 3
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to M/s. Vishamber Sahai Financiers Private Limited