Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
20 Jul 2009
Case Brief
In this press release, RBI stated that it cancelled the certificates of registration granted to three companies—V.R. Finlease Private Limited, Geberit Electronics Ltd. (formerly Sandhya Securities Limited), and Steering Securities & Finance Private Limited—under Section 45-IA(6) of the RBI Act, 1934. The cancellation means these companies cannot transact the business of a non-banking financial institution anymore.
Why RBI Acted
The Reserve Bank of India cancelled the certificates of registration granted to three companies under Section 45-IA(6) of the RBI Act, 1934. The stated basis is that they were carrying on the business of a non-banking financial institution, and following cancellation they are no longer permitted to transact NBFC business.
Operating Impact
The affected companies must stop NBFC operations and cannot legally conduct non-banking financial business after the cancellation date. Counterparties and customers dealing with these entities should treat them as no longer authorised NBFCs.
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
- Effective From
- 25 Jun 2009
- Entities Affected
- 3
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to Steering Securities & Finance Private Limited