Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 31 companies under Section 45-IA(6) of the RBI Act, 1934. The named entities span multiple states, with many based in Kolkata, and the release explicitly says that these companies shall not transact the business of a Non-Banking Financial Institution under the Act. This is a licensing cancellation affecting all 31 listed NBFCs.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Howrah, West Bengal
- Order Date
- Unknown date
- Effective From
- Unknown date
- 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 31 companies. The order lists the affected companies and states that, as such, the above companies shall not transact the business of a Non-Banking Financial Institution as defined in clause (a) of Section 45-I of the RBI Act, 1934.
Severity Assessment
Cancellation of Certificate of Registration is a full licensing action that bars the entities from carrying on NBFC business, which falls under severity 5.
Impact
The 31 affected companies must stop conducting NBFC business immediately and cannot legally transact as non-banking financial institutions. Customers and counterparties dealing with them in an NBFC capacity are impacted, and the cancellation removes their RBI registration going forward.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Affected Entities
- Kajal Vincom Private LimitedNBFC · Bulk Member
Published as Kajal Vincom Private Limited
- Herald Commerce LtdNBFC · Bulk Member
Published as Herald Commerce Ltd.
- Umang Finance Private LimitedNBFC · Bulk Member
Published as Umang Finance Private Limited
- L.K. Securities Private LtdNBFC · Bulk Member
Published as L.K. Securities Private Ltd.
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.