Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 30 companies under Section 45-IA(6) of the RBI Act, 1934. The companies listed in the release are therefore no longer permitted to transact the business of 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
- Unknown date
- Effective From
- 12 Jul 2018
- Entities Affected
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration of 30 named companies. The release states that, as a result, the 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, which is severity 5 regardless of the number of entities affected.
Impact
The 30 named companies must stop carrying on NBFC business. This directly affects the companies and their customers/counterparties who may have existing financial relationships with them.
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
- 12 Jul 2018
Affected Entities
- Business India Securities and Finance LtdNBFC · Primary
Published as Business India Securities and Finance Ltd
- Dhanipa Management Services Private LimitedNBFC · Bulk Member
Published as Dhanipa Management Services Private Limited
- Futuristic Securities LimitedNBFC · Bulk Member
Published as Futuristic Securities Limited
- Gorgeous Chemicals Export Private LimitedNBFC · Bulk Member
Published as Gorgeous Chemicals Export Private Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.