Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
29 Jun 2010
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration granted to Mahagauri Investments Ltd., whose registered office was in Worli, Mumbai, for carrying on the business of a non-banking financial institution. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the company 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 Mahagauri Investments Ltd. 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 that following cancellation it cannot transact that business.
Operating Impact
Mahagauri Investments Ltd. must stop carrying on NBFC business. The cancellation affects the company directly and prevents it from undertaking non-banking financial institution activities going forward.
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
- 12 May 2010
- Effective From
- 12 May 2010
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC