Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
24 Dec 2009
Case Brief
On November 13, 2009, the Reserve Bank of India cancelled the Certificate of Registration of Veljan Investments Limited, Hyderabad, under Section 45-IA(6) of the RBI Act, 1934. The company was registered to carry on the business of a non-banking financial institution, but the release says it had opted to exit from that business. As a result, it can no longer transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Veljan Investments Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the cancellation was because the company had opted to exit from the non-banking financial business.
Operating Impact
Veljan Investments Limited cannot carry on or transact the business of a non-banking financial institution going forward. The restriction applies to the company itself and effectively ends its NBFC operations.
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
- 13 Nov 2009
- Effective From
- 13 Nov 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC