RBI cancels registration of 5 NBFCs

MUMBAI: The Reserve Bank on Wednesday said it has cancelled the registration of five non-banking financial institutions, including three NBFCs that wanted to exit.

"The Reserve Bank of India has on February 25, 2010, cancelled the certificate of registration granted to Jaisal Securities Limited ... for carrying on the business of a non-banking financial institution as the company has opted to exit from the business," the apex bank said in a statement.

Jaisal Securities is a Chennai-based company. Another NBFC located in Chennai, Saibala Credits Private Ltd, too, wanted to exit from the business and its certificate has been cancelled, according to another statement.

"Following cancellation of the registration certificate, the company cannot transact the business of a non-banking financial institution," the central bank stated.

Bangalore-based Lucky Valley Investments & Holdings Ltd has also opted to get out from the NBFC sector and its registration stands cancelled, the RBI said.

However, in the case of Mumbai-based Nanavati Associates and Nagpur-based Ramsons Steel, whose registrations were also cancelled, the Reserve Bank did not give any reasons for the decision.