Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
3 Jul 2009
Case Brief
On May 18, 2009, RBI cancelled the Certificate of Registration of Vembu Investments Private Limited, Chennai, under Section 45-IA(6) of the RBI Act, 1934. The release says the company had chosen to exit the business of a non-banking financial institution, and as a result RBI cancelled its registration. The cancellation means the company cannot continue transacting the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Vembu Investments Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit from the business of a non-banking financial institution, and therefore its registration was cancelled. Following the cancellation, the company is no longer permitted to transact the business of a non-banking financial institution.
Operating Impact
Vembu Investments Private Limited can no longer carry on NBFC/non-banking financial institution საქმიანity after the cancellation. The action affects the company directly and prevents any further such regulated business unless it obtains fresh approval/registration under the applicable law.
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
- 18 May 2009
- Effective From
- 18 May 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC