Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 31 NBFCs under Section 45-IA(6) of the RBI Act, 1934. The order lists the affected companies and their cancellation dates. Following the cancellation, the companies are prohibited from transacting the business of a Non-Banking Financial Institution under the RBI Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Kolkata, West Bengal
- Order Date
- Unknown date
- Effective From
- Unknown date
- Entities Affected
Why RBI Acted
The Reserve Bank of India exercised powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration (CoR) of 31 named companies. The release states that, as a result, these companies shall not transact the business of a Non-Banking Financial Institution as defined under Section 45-I(a) of the RBI Act, 1934.
Severity Assessment
Cancellation of the CoR is a licence/certificate cancellation, which is a severity 5 action regardless of any other considerations.
Impact
All 31 named companies must stop carrying on NBFC business. Customers, counterparties, and other stakeholders can no longer rely on these firms to operate as registered non-banking financial institutions, and any such activity after cancellation would be unauthorized.
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
Affected Entities
- Ajanta Commerce LimitedNBFC · Primary
Published as Ajanta Commerce Limited
- Martand Plastics Private LimitedNBFC · Bulk Member
Published as Martand Plastics Private Limited
- Dawn Credit Capital Private LimitedNBFC · Bulk Member
Published as Dawn Credit Capital Private Limited
- SPN Securities Private LimitedNBFC · Bulk Member
Published as SPN Securities Private Limited
- Lalit Tea Co. Ltd
Published as Lalit Tea Co. Ltd.
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.