Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 29 companies under Section 45-IA(6) of the RBI Act, 1934. The listed entities include firms based in Mumbai, Thane, Kolhapur, Akola and Pune. Following cancellation, the companies are prohibited from carrying on business as a Non-Banking Financial Institution under Section 45-I(a) of the RBI Act, 1934.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Mumbai, Maharashtra
- Order Date
- 15 Jun 2018
- Effective From
- 15 Jun 2018
- 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 (CoR) of 29 companies. The release lists each company and states that, as a result, the above companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Severity Assessment
Cancellation of the Certificate of Registration is a license cancellation, which is severity 5 regardless of any additional details.
Impact
All 29 listed companies lose their NBFC registration and must stop transacting NBFC business. This directly affects the firms themselves and any customers or counterparties relying on their non-banking financial activities. The prohibition takes effect from the cancellation dates stated in the release (June 15, 2018 or June 28, 2018, depending on the company).
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Restrictions & Effective Timeline
- Effective From
- 15 Jun 2018
Affected Entities
- The Commercial Credit Corporation (1943) Private LimitedNBFC · Primary
Published as The Commercial Credit Corporation (1943) Private Limited
- Silver-star Commercial Company LimitedNBFC · Bulk Member
Published as Silver-star Commercial Company Limited
- Sanghvi Investments and Leasing LimitedNBFC · Bulk Member
Published as Sanghvi Investments and Leasing Limited
- Leela Capital & Finance LimitedNBFC · Bulk Member
Published as Leela Capital & Finance Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.