Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
23 Jun 2008
Case Brief
On March 18, 2008, the Reserve Bank of India cancelled the certificate of registration of Narayana Capitals Limited, whose registered office was in Hyderabad. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934. Following the cancellation, the company cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to Narayana Capitals Limited on March 18, 2008. The stated basis was Section 45-IA(6) of the RBI Act, 1934, which empowers RBI to cancel the registration certificate of a non-banking financial company. As a result, the company is no longer permitted to carry on the business of a non-banking financial institution.
Operating Impact
Narayana Capitals Limited is prohibited from carrying on NBFC business after the cancellation. Customers and counterparties should no longer treat it as authorized to operate as a non-banking financial institution.
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
- 18 Mar 2008
- Effective From
- 18 Mar 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC