Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
14 Dec 2007
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Shani Financial Services Private Limited, whose registered office is in Bareilly (U.P.), on November 30, 2007. The action was taken under Section 45-IA(6) of the RBI Act, 1934. Following the cancellation, the company is not permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Shani Financial Services Private Limited, Bareilly, under Section 45-IA(6) of the RBI Act, 1934, for carrying on the business of a non-banking financial institution. The release does not state the underlying misconduct or specific violations; it only notes the statutory basis for cancellation and that the company is no longer permitted to transact NBFC business.
Operating Impact
Shani Financial Services Private Limited cannot continue NBFC operations after the cancellation. The restriction is immediate as of the stated cancellation date, and it prevents the company from transacting non-banking financial institution business going forward.
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
- Order Date
- 30 Nov 2007
- Effective From
- 30 Nov 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC