Recorded RBI impact
Monetary penalty
Monetary penalty · Fresh imposition
Published by RBI
14 Oct 2024
Case Brief
By order dated October 1, 2024, RBI imposed a monetary penalty of Rs 28.30 lakh on SG Finserve limited (formerly M/s Moongipa Securities Limited). RBI found that the company did not comply with specific conditions attached to its Certificate of Registration issued under Section 45IA(5) of the RBI Act, 1934. In particular, the company had accepted public funds and extended loans in violation of those conditions. The penalty was imposed under Section 58G(1)(a) read with Section 58B(6) of the RBI Act.
Why RBI Acted
RBI imposed a monetary penalty under Section 58G(1)(a) read with Section 58B(6) of the RBI Act, 1934 after finding that SG Finserve limited had not complied with the specific conditions attached to its CoR issued under Section 45IA(5). The company’s FY 2022-23 financial statements indicated the non-compliance, and RBI sustained the charge that it had accepted public funds and extended loans contrary to the CoR conditions.
Operating Impact
The company must absorb the monetary penalty, and the order may also leave room for RBI to initiate further action. No operational restriction is stated in this release, but the finding records a compliance breach involving funding and lending activity.
Regulatory Basis
- section 45IA(5) of Reserve Bank of India Act, 1934
- clause (a) of sub-section (1) of Section 58G read with sub-section (6) of Section 58 B of the RBI Act
Action Facts
- Primary Impact
- Monetary penalty
- Order Date
- 1 Oct 2024
- Effective From
- 1 Oct 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to SG Finserve limited