Certificate of Registration - Cancelled

Case Brief

The Reserve Bank of India cancelled the Certificates of Registration of two companies: M/s. Inmex Investments Private Limited and M/s. Chitra Finance and Investment Private Limited. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934. As a result, the companies are not permitted to transact the business of a non-banking financial institution.

Action Snapshot

Primary Impact: License cancellation
Entity Type: NBFC
Location: Delhi, Delhi
Order Date

Unknown date

Effective From

25 Nov 2009

Entities Affected

2

Why RBI Acted

Licensing breach

The Reserve Bank of India cancelled the Certificates of Registration granted to M/s. Inmex Investments Private Limited and M/s. Chitra Finance and Investment Private Limited for carrying on the business of a non-banking financial institution. The release cites Section 45-IA(6) of the RBI Act, 1934 as the statutory basis for cancellation. It also states that after cancellation of the registration certificate, the companies cannot transact the business of a non-banking financial institution.

Severity Assessment

Cancellation of the Certificate of Registration is a license cancellation, which is severity 5 regardless of any other factors.

Impact

Both companies are barred from continuing NBFC business from the stated cancellation date. Customers and counterparties should no longer treat them as registered NBFCs for new non-banking financial institution transactions.

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

Restrictions & Effective Timeline

Effective From: 25 Nov 2009

Affected Entities

M/s. Chitra Finance and Investment Private Limited
Published as M/s. Chitra Finance and Investment Private Limited
NBFC · Bulk Member
M/s. Inmex Investments Private Limited
Published as M/s. Inmex Investments Private Limited
NBFC · Primary