Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
4 May 2007
Case Brief
On April 18, 2007, the Reserve Bank of India cancelled the certificate of registration of Sampann Finance Limited, which had its registered office in Muzaffarnagar. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934. The release says the company opted to exit from the business of a non-banking financial institution, and following cancellation it cannot transact that business.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to Sampann Finance Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit from the business of a non-banking financial institution, and therefore its registration was cancelled. As a result, the company can no longer carry on the business of a non-banking financial institution.
Operating Impact
Sampann Finance Limited is no longer permitted to carry on non-banking financial institution activity. The action affects the company directly and removes its ability to operate in the NBFC business going forward.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 18 Apr 2007
- Effective From
- 18 Apr 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC