Action on Sona Finance
Case Brief
The Reserve Bank of India cancelled the certificate of registration issued to Sona Finance Limited, whose registered office was in Hyderabad, on 7 February 2005. The certificate had authorized the company to carry on the business of a non-banking financial institution. RBI said the cancellation was exercised under Section 45IA of the RBI Act, 1934.
The Reserve Bank of India cancelled the certificate of registration of Sona Finance Limited, Hyderabad, which had been issued for carrying on the business of a non-banking financial institution. The cancellation was made under the powers conferred by Section 45IA of the Reserve Bank of India Act, 1934, which governs registration of non-banking financial companies.
Severity Assessment
Cancellation of an NBFC's certificate of registration is a licence cancellation, which carries severity 5 under the rubric.
Sona Finance Limited can no longer carry on NBFC business under the cancelled registration. The company is affected immediately from the cancellation date, and counterparties should treat its RBI registration as withdrawn.
Published as Sona Finance Limited
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