RBI cancels licences of 3 Chennai-based NBFCs

MUMBAI: The Reserve Bank has cancelled registration certificate of three Chennai-based non-banking financial companies ( NBFCs) on various grounds.

RBI, according to separate notifications, has cancelled the licences of three Chennai based companies, Tamil Nadu Water Investment Company, Ashley Holdings and LSP Finance.

While licences of Tamil Nadu Water Investment Company, and Ashley Holdings were cancelled on their voluntary exit to carry out NBFI activities, licence of LSP Finance was cancelled for carrying business of a non-banking financial institution on the supervisory grounds, RBI today said.

Under the Reserve Bank of India Act, 1934, the central bank has powers to cancel the registration certificate of a non-banking financial company, the notices said.