Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
26 Apr 2013
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of four non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The affected entities are TGF Financials Limited, Good Luck Finance Co. Ltd., Baug-E-Sara Investments Ltd., and Suryalaxmi Securities Ltd. After the cancellation, these companies are not permitted to transact the business of a non-banking financial institution.
Why RBI Acted
Under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the certificates of registration of four non-banking financial companies: TGF Financials Limited, Good Luck Finance Co. Ltd., Baug-E-Sara Investments Ltd., and Suryalaxmi Securities Ltd. The release states that once the registration certificate is cancelled, the companies cannot carry on the business of a non-banking financial institution.
Operating Impact
The four companies must stop NBFC business activities immediately and cannot legally undertake non-banking financial institution operations going forward. This affects the companies themselves and any customers or counterparties relying on their NBFC services.
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
- 4 Mar 1998
- Entities Affected
- 4
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to TGF Financials Limited