Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
5 Oct 2005
Case Brief
On September 22, 2005, the Reserve Bank of India cancelled the certificate of registration issued to Trimurthi Securities Limited, whose registered office was in Hyderabad. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934, for carrying on the business of a non-banking financial institution. This is a licence cancellation action against an NBFC.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration issued to Trimurthi Securities Limited under Section 45-IA(6) of the RBI Act, 1934. The order states that the company was registered to carry on the business of a non-banking financial institution, and RBI has the power to cancel the registration certificate of an NBFC under that provision.
Operating Impact
Trimurthi Securities Limited cannot continue operating as a registered non-banking financial institution unless it obtains fresh regulatory approval or otherwise becomes eligible under law. The action directly affects the company’s ability to conduct NBFC business.
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
- 22 Sept 2005
- Effective From
- 22 Sept 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC