Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 56 NBFCs named in the annex, invoking Section 45-IA(6) of the RBI Act, 1934. This is a license-cancellation action: the affected entities are barred from transacting the business of a non-banking financial institution under the Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Not specified
- Order Date
- Unknown date
- Effective From
- Unknown date
- Entities Affected
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934 to cancel the Certificate of Registration of 56 non-banking financial companies listed in the annex. The cancellation means the affected companies are no longer permitted to transact the business of a non-banking financial institution as defined under clause (a) of Section 45-I of the Act.
Severity Assessment
Cancellation of Certificate of Registration is a license cancellation, which is severity 5 regardless of the absence of a monetary penalty.
Impact
All 56 listed NBFCs lose the legal ability to conduct non-banking financial institution business. The cancellation is immediately consequential for the companies and affects their operational ability, business counterparties, and customers reliant on NBFC services.
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
Affected Entities
- Sears Securities & Investments Private LimitedNBFC · Bulk Member
Published as Sears Securities & Investments Private Limited
- Compact Lease Financing LimitedNBFC · Bulk Member
Published as Compact Lease Financing Limited
- Seasons Trading & Investments Private LimitedNBFC · Bulk Member
Published as Seasons Trading & Investments Private Limited
- Master Leasing LimitedNBFC · Bulk Member
Published as Master Leasing Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.