Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
7 Jun 2010
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration granted to two non-banking financial companies: Sugati Leasing and Finance Private Limited and Wiseman Finance Private Limited. The companies had registered offices in Mumbai, and the cancellations were issued under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As a result, both entities are prohibited from transacting the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificates of registration granted to Sugati Leasing and Finance Private Limited and Wiseman Finance Private Limited, both having registered offices in Mumbai, for carrying on the business of a non-banking financial institution. Following cancellation, the companies cannot transact the business of a non-banking financial institution. The release cites Section 45-IA(6) of the Reserve Bank of India Act, 1934 as the statutory basis for cancellation.
Operating Impact
The two companies must stop all NBFC activities and cannot legally continue or resume non-banking financial institution business unless separately permitted by law. Customers and counterparties should treat them as no longer authorised NBFCs. The cancellation is effective on the stated cancellation dates: April 29, 2010 for Sugati Leasing and Finance Private Limited and April 27, 2010 for Wiseman Finance Private Limited.
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
- Effective From
- 29 Apr 2010
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to Wiseman Finance Private Limited