Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
5 May 2010
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of Nanavati Associates Private Limited and Ramsons Steel Private Limited, whose registered offices were in Mumbai and Nagpur respectively. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, both companies are no longer permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificates of registration granted to Nanavati Associates Private Limited and Ramsons Steel Private Limited, both having their registered offices in Maharashtra, for carrying on the business of a non-banking financial institution. The release states that, following cancellation, the companies cannot transact the business of a non-banking financial institution. The statutory basis cited is Section 45-IA(6) of the Reserve Bank of India Act, 1934, which empowers RBI to cancel an NBFC's registration certificate.
Operating Impact
Both companies must cease NBFC business immediately and cannot undertake non-banking financial institution गतिविधies going forward. The restriction affects the companies directly and, indirectly, their counterparties and customers relying on their NBFC operations.
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
- Effective From
- 5 Mar 2010
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to Ramsons Steel Private Limited