Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
6 Nov 2008
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of M/s. Western Securities Ltd., whose registered office was in Vikhroli (West), Mumbai, under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit the business of a non-banking financial institution. As a result, the company cannot transact the business of a non-banking financial institution.
Why RBI Acted
RBI cancelled the certificate of registration granted to M/s. Western Securities Ltd. under Section 45-IA(6) of the RBI Act, 1934. The stated reason is that the company had opted to exit from the business of a non-banking financial institution.
Operating Impact
The company is no longer permitted to carry on non-banking financial institution business. This affects the company directly and prevents it from undertaking any NBFC activity after the cancellation.
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
- 1 Oct 2008
- Effective From
- 1 Oct 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC