Certificate of Registration Cancelled

Case Brief

The Reserve Bank of India, using its powers under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of Shravani Financial Services Private Limited (formerly Pesala Financial Services Limited) on August 26, 2002. The company, based in Hyderabad, is therefore barred from carrying on the business of a non-banking financial institution.

Action Snapshot

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

26 Aug 2002

Effective From

26 Aug 2002

Entities Affected

1

Why RBI Acted

Licensing breach

The Reserve Bank of India cancelled the Certificate of Registration issued to Shravani Financial Services Private Limited (formerly Pesala Financial Services Limited) under Section 45-IA(6) of the RBI Act, 1934. The release states that, as a result, the company cannot transact the business of a non-banking financial institution as defined under Section 45-I(a).

Severity Assessment

Cancellation of a Certificate of Registration is a full licence cancellation, which is a severity 5 action.

Impact

Shravani Financial Services Private Limited can no longer operate as a non-banking financial institution. Customers, counterparties, and other stakeholders cannot rely on it for NBFC activities after the cancellation date of August 26, 2002.

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: 26 Aug 2002

Affected Entities

Shravani Financial Services Private Limited
Published as Shravani Financial Services Private Limited
NBFC · Primary
Pesala Financial Services Limited
Published as Pesala Financial Services Limited
NBFC · Bulk Member