Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 30 named companies under Section 45-IA(6) of the RBI Act, 1934. The entities span multiple locations, including many based in Kolkata, and include Divine Leasing and Finance Limited, Esquire Financial Services Limited, and others listed in the release. Following cancellation, the companies are not permitted to transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Noida, Uttar Pradesh
- Order Date
- Unknown date
- Effective From
- 29 Aug 2018
- Entities Affected
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the RBI Act, 1934, the Reserve Bank of India cancelled the Certificate of Registration (CoR) 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 carries severity 5 regardless of any additional operational prohibition.
Impact
All 30 companies are barred from conducting NBFC business going forward. Customers and counterparties should treat the firms as no longer authorised to operate as non-banking financial institutions; any new NBFC activity must cease immediately.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Restrictions & Effective Timeline
- Effective From
- 29 Aug 2018
Affected Entities
- Esquire Financial Services LimitedNBFC · Bulk Member
Published as Esquire Financial Services Limited
- Hindustan Commercial Company LimitedNBFC · Bulk Member
Published as Hindustan Commercial Company Limited
- Century Enclave Private LimitedNBFC · Bulk Member
Published as Century Enclave Private Limited
- Raghav Commercial LtdNBFC · Bulk Member
Published as Raghav Commercial Ltd.
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.