Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
13 Feb 2009
Case Brief
On January 15, 2009, the Reserve Bank of India cancelled the Certificate of Registration granted to State Industries Promotion Corporation of Tamilnadu Ltd., whose registered office was in Egmore, Chennai. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934, after the company chose to exit the business of a non-banking financial institution. Following the cancellation, the company is not permitted to transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to State Industries Promotion Corporation of Tamilnadu Ltd. under Section 45-IA(6) of the RBI Act, 1934. The release says the company had opted to exit from the business of a non-banking financial institution, and as a result it can no longer transact NBFC business.
Operating Impact
State Industries Promotion Corporation of Tamilnadu Ltd. can no longer conduct non-banking financial institution business after the cancellation of its registration. The restriction is effective immediately from the stated date, and it affects the company’s ability to operate as an NBFC.
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
- 15 Jan 2009
- Effective From
- 15 Jan 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC