Case Brief
What Happened
The Reserve Bank of India, exercising powers under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of 27 companies. The affected entities are listed in the press release, and the cancellation date for all is 03 July, 2018. As a result, these companies are barred from transacting the business of a Non-Banking Financial Institution as defined under Section 45-I(a) of the RBI Act, 1934.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Mumbai, Maharashtra
- Order Date
- 3 Jul 2018
- Effective From
- 3 Jul 2018
- 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 27 companies. The release lists each affected company and their CoR cancellation date as 03 July, 2018. Following cancellation, the companies are not permitted to 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 full operating prohibition for the affected NBFCs, which falls in severity 5.
Impact
All 27 listed companies lose their authority to conduct NBFC business. They must cease non-banking financial institution საქმიანity immediately and cannot accept or continue such business operations under the cancelled registration.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I (a) of the RBI Act, 1934
Restrictions & Effective Timeline
- Effective From
- 3 Jul 2018
Affected Entities
- Sai Mudra Finance Private LimitedNBFC · Bulk Member
Published as Sai Mudra Finance Private Limited
- Swati Capitals Private LimitedNBFC · Bulk Member
Published as Swati Capitals Private Limited
- Jagnar Leasing & Finance Private LimitedNBFC · Bulk Member
Published as Jagnar Leasing & Finance Private Limited
- Varnilam Investments & Trading Company LimitedNBFC · Bulk Member
Published as Varnilam Investments & Trading Company Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.