Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
29 Dec 2006
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Maha Seer Investment Private Limited, New Delhi, on November 14, 2006. The action was taken under Section 45-IA(6) of the RBI Act, 1934, after the company opted to exit the business of a non-banking financial institution. As a result, the company is no longer permitted to transact non-banking financial institution business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Maha Seer Investment Private Limited, New Delhi, under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit from the business of a non-banking financial institution, and therefore its registration was cancelled. After cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
Maha Seer Investment Private Limited is prohibited from carrying on any non-banking financial institution business going forward. The restriction affects the company directly and may also affect counterparties that relied on its NBFC activities. The effective date of the cancellation is November 14, 2006.
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
- Order Date
- 14 Nov 2006
- Effective From
- 14 Nov 2006
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC