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 listed entities include firms such as Polar Investments Ltd., Prime Investrade Limited, and Commercial Leasing Corporation Pvt. Ltd. Following the cancellation, the companies are not permitted to transact the business of a Non-Banking Financial Institution as defined under the RBI Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Mumbai, Maharashtra
- Order Date
- 2 Aug 2018
- Effective From
- 2 Aug 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 30 companies. The order states that 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 license cancellation, which is severity 5 regardless of the absence of a monetary penalty.
Impact
All 30 listed companies lose their NBFC registration and cannot carry on non-banking financial institution business. This prevents them from undertaking NBFC activities going forward, affecting their operations and any counterparties relying on those businesses.
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
- 2 Aug 2018
Affected Entities
- Polar Investments LtdNBFC · Primary
Published as Polar Investments Ltd.
- Regal Entertainment and Consultants Limited (Formerly Regal Finance & Consultants Ltd.)NBFC · Bulk Member
Published as Regal Entertainment and Consultants Limited (Formerly Regal Finance & Consultants Ltd.)
- Tirupati Screen Printing Co. LtdNBFC · Bulk Member
Published as Tirupati Screen Printing Co. Ltd.
- Barkat Leasing & Financial Services LimitedNBFC · Bulk Member
Published as Barkat Leasing & Financial Services Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.