Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
18 Feb 2005
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration issued to Mahatma Securities India Limited on February 11, 2005. The company, with its registered office in Karimnagar (Hyderabad release title), was registered to carry on the business of a non-banking financial institution. The cancellation was made under Section 45IA of the RBI Act, 1934, which empowers RBI to cancel the registration certificate of an NBFC.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration of Mahatma Securities India Limited under Section 45IA of the RBI Act, 1934. The release states that the company was registered to carry on the business of a non-banking financial institution, and RBI has the power under Section 45IA to cancel the registration certificate of an NBFC.
Operating Impact
Mahatma Securities India Limited loses its RBI registration to operate as a non-banking financial company. It must stop carrying on NBFC business under the cancelled certificate, and any regulated NBFC activities tied to that registration are no longer permitted.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
- clause (a) of Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 11 Feb 2005
- Effective From
- 11 Feb 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC