Action on Hima Finance Company
Case Brief
On May 18, 2009, the Reserve Bank of India cancelled the certificate of registration of M/s Hima Finance Company Private Limited, whose registered office was in Hyderabad. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the company is barred from transacting the business of a non-banking financial institution.
The Reserve Bank of India cancelled the certificate of registration granted to M/s Hima Finance Company Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the registration was cancelled for carrying on the business of a non-banking financial institution, and that following cancellation the company cannot transact the business of a non-banking financial institution.
Severity Assessment
Cancellation of a certificate of registration is a license cancellation, which carries severity 5 regardless of any monetary amount.
The company must stop NBFC operations and cannot legally transact non-banking financial institution business after the cancellation. Customers and counterparties dealing with the firm in an NBFC capacity are affected by the termination of that authorization.
Published as M/s Hima Finance Company Private Limited
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