{"id":277377,"date":"2019-06-04T05:34:39","date_gmt":"2019-06-04T05:34:39","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=277377"},"modified":"2019-06-04T05:47:06","modified_gmt":"2019-06-04T05:47:06","slug":"rbi-may-cancel-ilfs-financial-services-licence-after-sfio-report-flags-violations","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/rbi-may-cancel-ilfs-financial-services-licence-after-sfio-report-flags-violations\/","title":{"rendered":"RBI may cancel IL&amp;FS Financial Services\u2019 licence after SFIO report flags violations"},"content":{"rendered":"<p>With the Serious Fraud Investigation Office (SFIO) investigation into IL&amp;FS Financial Services (IFIN) flagging ever-greening of loans and serious violation of norms relating to credit concentration and net owned funds, the Reserve Bank of India may look at cancelling the licence of the non-banking finance company (NBFC).<\/p>\n<p>The central bank could invoke Section 45 of the RBI Act, 1934, against the wholly-owned subsidiary of infrastructure lender IL&amp;FS, which itself is under the lens following loan defaults and its ripple impact on the financial system.<\/p>\n<p>Before taking action against a regulated entity, the RBI issues a show-cause notice to it, gives it a hearing and then takes a decision on whether it should impose a penalty or cancel the licence\/registration. Following the adverse findings in the SFIO investigation into IFIN, the regulator may take the extreme step, said sources aware of the developments.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With the Serious Fraud Investigation Office (SFIO) investigation into IL&amp;FS Financial Services (IFIN) flagging ever-greening of loans and serious violation of norms relating to credit concentration and net owned funds, the Reserve Bank of India may look at cancelling the licence of the non-banking finance company (NBFC). The central bank could invoke Section 45 of the RBI Act, 1934, against the wholly-owned subsidiary of infrastructure lender IL&amp;FS, which itself is under the lens following loan defaults and its ripple impact on the financial system. Before taking action against a regulated entity, the RBI issues a show-cause notice to it, gives [&hellip;]<\/p>\n","protected":false},"author":40,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130],"tags":[],"class_list":["post-277377","post","type-post","status-publish","format-standard","hentry","category-newspapers"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/277377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=277377"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/277377\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=277377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=277377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=277377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}