Case Brief
What Happened
In a Section 45-IA(6) action under the RBI Act, 1934, the Reserve Bank of India cancelled the Certificates of Registration of 33 companies that were operating as NBFCs. The release names each company and gives the cancellation dates. Following cancellation, the companies are barred from transacting the business of a non-banking financial institution as defined in the RBI Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- New Delhi, Delhi
- Order Date
- Unknown date
- Effective From
- 12 Sept 2018
- Entities Affected
Why RBI Acted
The Reserve Bank of India cancelled the Certificates of Registration of 33 companies under Section 45-IA(6) of the RBI Act, 1934. The release lists each company and its CoR cancellation date. It also 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 the Certificate of Registration is a licence cancellation, which carries severity 5 regardless of monetary amount.
Impact
All 33 affected companies must stop NBFC business operations with effect from the stated cancellation dates. Customers, counterparties, and borrowers dealing with these firms can no longer rely on them for regulated non-banking financial services after cancellation.
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
- 12 Sept 2018
Affected Entities
- Shanker Radhey Finance & Investment Company Pvt. LimitedNBFC · Bulk Member
Published as Shanker Radhey Finance & Investment Company Pvt. Limited
- Shivlok Leasing and Finance LimitedNBFC · Bulk Member
Published as Shivlok Leasing and Finance Limited
- Shubh Exim LimitedNBFC · Bulk Member
Published as Shubh Exim Limited
- Sahal (India) Finlease & Investment LimitedNBFC · Bulk Member
Published as Sahal (India) Finlease & Investment Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.