Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
6 Aug 2007
Case Brief
On July 20, 2007, the Reserve Bank of India cancelled the certificate of registration of SSJ Finance & Securities (P) Limited, which was registered to carry on the business of a non-banking financial institution. The release says the company had opted to exit that business, and RBI exercised its powers under Section 45-IA(6) of the RBI Act, 1934. Following the cancellation, SSJ Finance & Securities (P) Limited is no longer 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 SSJ Finance & Securities (P) 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 the CoR was cancelled. After cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
The company loses its RBI registration and cannot continue NBFC operations. Any non-banking financial institution business must stop, and counterparties should treat the entity as no longer authorized for such activity. The action takes effect from July 20, 2007.
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
- 20 Jul 2007
- Effective From
- 20 Jul 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC