Case Brief
What Happened
The Reserve Bank of India cancelled the Certificates of Registration of 26 non-banking financial companies named in the annex, invoking Section 45-IA(6) of the RBI Act, 1934. This is a licensing cancellation affecting each of the listed NBFCs and means they cannot transact the business of a non-banking financial institution as defined 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 cancelled the certificate of registration of 26 non-banking financial companies, exercising powers under Section 45-IA(6) of the RBI Act, 1934. As a result, the listed companies can no longer transact the business of a non-banking financial institution under clause (a) of Section 45-I of the RBI Act, 1934.
Severity Assessment
Cancellation of Certificate of Registration is a licensing action that fully prevents the NBFCs from carrying on non-banking financial business, which falls in severity 5.
Impact
The 26 named NBFCs are barred from carrying on non-banking financial business after the cancellation of their registration certificates. This affects the companies’ ability to operate as NBFCs and has implications for their customers and counterparties dealing with 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
- M/s Labh Lease and Finance LtdNBFC · Bulk Member
Published as M/s Labh Lease and Finance Ltd
- M/s Mathura Financial Services LimitedNBFC · Bulk Member
Published as M/s Mathura Financial Services Limited
- M/s M.J.K. Mercantiles Private LimitedNBFC · Bulk Member
Published as M/s M.J.K. Mercantiles Private Limited
- M/s Bengani Resources Private LimitedNBFC · Bulk Member
Published as M/s Bengani Resources Private Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.