Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
6 Feb 2007
Case Brief
On December 15, 2006, the Reserve Bank of India cancelled the Certificate of Registration of Sanghamitra Leafin Limited, whose registered office was in Vijayawada, Andhra Pradesh. The action was taken under Section 45-IA(6) of the RBI Act, 1934, after the company opted to exit the non-banking financial institution business. As a result, the company can no longer transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Sanghamitra Leafin Limited under Section 45-IA(6) of the RBI Act, 1934. The stated reason was that the company had opted to exit from the business of a non-banking financial institution.
Operating Impact
Sanghamitra Leafin Limited is no longer permitted to carry on non-banking financial institution business. The restriction directly affects the company’s ability to operate as an NBFC and prevents it from undertaking such activities 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
- 15 Dec 2006
- Effective From
- 15 Dec 2006
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC