Case Brief
What Happened
In exercise of powers under Section 45-IA(6) of the RBI Act, 1934, the Reserve Bank of India cancelled the Certificate of Registration of 36 companies. The companies listed in the release are various NBFCs across multiple states. Following the cancellation, they are no longer permitted to transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Kolkata, West Bengal
- Order Date
- Unknown date
- Effective From
- Unknown date
- Entities Affected
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of 36 named companies under Section 45-IA(6) of the RBI Act, 1934. The release states that, as a result, these 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 Certificate of Registration is a severity 5 licensing action that fully prevents the entities from carrying on NBFC business.
Impact
All 36 named companies lose their NBFC registration and cannot legally carry on non-banking financial institution business going forward. Any current or prospective NBFC operations must stop, affecting their customers and counterparties that rely on such regulated financial services.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Affected Entities
- M/s Gajvadan Trades Pvt. LtdNBFC · Bulk Member
Published as M/s Gajvadan Trades Pvt. Ltd.
- M/s Shivarpan Consultants Pvt. LtdNBFC · Bulk Member
Published as M/s Shivarpan Consultants Pvt. Ltd.
- M/s Sri Virat Finance LimitedNBFC · Bulk Member
Published as M/s Sri Virat Finance Limited
- M/s Kents Finance LimitedNBFC · Bulk Member
Published as M/s Kents Finance Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.