Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 33 companies under Section 45-IA(6) of the RBI Act, 1934. The named companies are all NBFCs, and the order means they can no longer carry on the business of a non-banking financial institution under Section 45-I(a) of the Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Not specified
- Order Date
- 18 Jul 2018
- Effective From
- 18 Jul 2018
- Entities Affected
Why RBI Acted
The Reserve Bank of India exercised powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificates of Registration of 33 companies. 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 licence cancellation action, which is severity 5 regardless of the number of entities affected.
Impact
All 33 affected companies are prohibited from conducting NBFC business going forward. Customers and counterparties should treat them as no longer authorised to undertake non-banking financial institution activities.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the RBI Act, 1934
Restrictions & Effective Timeline
- Effective From
- 18 Jul 2018
Affected Entities
- Ashit Leasing and Finance Company Private LimitedNBFC · Bulk Member
Published as Ashit Leasing and Finance Company Private Limited
- Beckon Leasing and Finance LimitedNBFC · Bulk Member
Published as Beckon Leasing and Finance Limited
- Chidanand Investment and Financial Consultancy LimitedNBFC · Bulk Member
Published as Chidanand Investment and Financial Consultancy Limited
- Essenar Investments Private LimitedNBFC · Bulk Member
Published as Essenar Investments Private Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.