Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Jun 2005
Case Brief
On April 28, 2005, the Reserve Bank of India cancelled the Certificate of Registration of Niskalp Investments and Trading Company Limited, whose registered office was in Chembur, Mumbai. The company was registered to carry on the business of a non-banking financial institution. The release states that RBI exercised its powers under Section 45IA of the Reserve Bank of India Act, 1934 to cancel the registration certificate of the NBFC.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to Niskalp Investments and Trading Company Limited, Mumbai, for carrying on the business of a non-banking financial institution. The release cites Section 45IA of the Reserve Bank of India Act, 1934 as the statutory basis for cancellation of the registration certificate of a non-banking financial company.
Operating Impact
The company can no longer operate as a registered non-banking financial institution unless it obtains fresh regulatory approval through the appropriate process. This directly affects the entity and may affect counterparties relying on its NBFC status; the release does not specify any further deadline or remedial steps.
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
- 28 Apr 2005
- Effective From
- 28 Apr 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC