Case Brief
What Happened
RBI, acting under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of 30 NBFCs named in the press release. The order covers multiple companies across Delhi, Kolkata, Haryana and elsewhere, and the release makes clear that these entities may not transact the business of a Non-Banking Financial Institution under Section 45-I(a) of the RBI Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Not specified
- 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 (CoR) of 30 named 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 Certificates of Registration is a licence cancellation action, which is severity 5 regardless of any operational consequences.
Impact
All 30 listed companies are prohibited from carrying on NBFC business going forward. This affects their ability to undertake non-banking financial activities and signals that they must cease such operations immediately; the restriction applies to the named entities only.
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
- Supra Industrial Resources LimitedNBFC · Bulk Member
Published as Supra Industrial Resources Limited
- Shree Dhan Finance And Investment Company LimitedNBFC · Bulk Member
Published as Shree Dhan Finance And Investment Company Limited
- S.K. Mittal Finance & Investment Private LimitedNBFC · Bulk Member
Published as S.K. Mittal Finance & Investment Private Limited
- Subhlabh Capital Services LimitedNBFC · Bulk Member
Published as Subhlabh Capital Services Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.