Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Mar 2005
Case Brief
The Reserve Bank of India cancelled the certificate of registration of three companies under Section 45 IA of the RBI Act, 1934. The affected entities are Twin Cities Investments & Finances Limited, Parasnath Fin-Sec Pvt. Ltd., and Sri Ramalingeshwara Leasing & Autofin Pvt. Ltd. Following cancellation, the companies are barred from transacting business as non-banking financial institutions under the Act.
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45 IA of the RBI Act, 1934 to cancel the certificate of registration issued to three companies carrying on the business of a non-banking financial institution. The named entities are Twin Cities Investments & Finances Limited, Parasnath Fin-Sec Pvt. Ltd., and Sri Ramalingeshwara Leasing & Autofin Pvt. Ltd. As a result, they are no longer permitted to transact the business of an NBFC as defined in Section 45 I(a).
Operating Impact
The three companies must stop conducting NBFC business immediately and cannot legally continue non-banking financial institution საქმიან. Customers and counterparties should not rely on them to originate or carry on NBFC activities after the cancellation.
Regulatory Basis
- Section 45 IA 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
- 2 Mar 2005
- Effective From
- 2 Mar 2005
- Entities Affected
- 3
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to Parasnath Fin-Sec Pvt. Ltd