Case Brief
RBI imposed a monetary penalty on Grewal Brothers Finance Company Private Limited, Kerala, after concluding that the company had violated the Master Direction on NBFC Scale Based Regulation. The company failed to obtain prior written permission from RBI before changing its management in a way that resulted in more than 30% of its directors being replaced, excluding independent directors. The penalty was issued under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934.
Action Snapshot
- Primary Impact
- Fine: Rs 50,000
- Entity Type
- NBFC
- Location
- Kerala
- Order Date