Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
15 Feb 2005
Case Brief
The Reserve Bank of India cancelled the certificate of registration issued to Sona Finance Limited, whose registered office was in Hyderabad, on 7 February 2005. The certificate had authorized the company to carry on the business of a non-banking financial institution. RBI said the cancellation was exercised under Section 45IA of the RBI Act, 1934.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration of Sona Finance Limited, Hyderabad, which had been issued for carrying on the business of a non-banking financial institution. The cancellation was made under the powers conferred by Section 45IA of the Reserve Bank of India Act, 1934, which governs registration of non-banking financial companies.
Operating Impact
Sona Finance Limited can no longer carry on NBFC business under the cancelled registration. The company is affected immediately from the cancellation date, and counterparties should treat its RBI registration as withdrawn.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
- clause (a) of Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 7 Feb 2005
- Effective From
- 7 Feb 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC