Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 30 non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The named entities span multiple locations across India, and the order states that they shall not transact the business of a Non-Banking Financial Institution as defined in the Act.
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
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificate of Registration of 30 named companies. The release states that, as a result, these entities shall not transact the business of a Non-Banking Financial Institution as defined in clause (a) of Section 45-I of the RBI Act, 1934.
Severity Assessment
Cancellation of Certificates of Registration is a license-cancellation action, which is severity 5 regardless of the number of entities involved.
Impact
All 30 affected companies lose their NBFC registration and cannot carry on non-banking financial institution business going forward. Customers and counterparties should expect those entities to cease NBFC operations, subject to any applicable wind-down or regulatory directions.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Affected Entities
- Pentafour Commotrade Private LimitedNBFC · Primary
Published as Pentafour Commotrade Private Limited
- Laila Finance LimitedNBFC · Bulk Member
Published as Laila Finance Limited
- Subh Prabhat Multi Projects LtdNBFC · Bulk Member
Published as Subh Prabhat Multi Projects Ltd.
- Chakrapani Consultancy Private LimitedNBFC · Bulk Member
Published as Chakrapani Consultancy Private Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.