Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 34 companies under Section 45-IA(6) of the RBI Act, 1934. The companies span several locations and include multiple finance/leasing entities, and the release states that they shall not transact the business of a Non-Banking Financial Institution under the Act. This is a full licence cancellation for the affected NBFCs.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- New Delhi, Delhi
- Order Date
- Unknown date
- Effective From
- 3 Oct 2018
- Entities Affected
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, the RBI cancelled the Certificate of Registration of 34 companies. The release lists each company and its date of cancellation. As a result, the companies are no longer permitted to 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 CoR is a license cancellation, which is severity 5 regardless of any other considerations.
Impact
All 34 listed companies must stop operating as NBFCs and cannot undertake non-banking financial institution business going forward. Customers and counterparties should treat them as no longer authorised for NBFC activity. The cancellation takes effect from the respective cancellation dates listed against each company.
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
- 3 Oct 2018
Affected Entities
- Raja Devi Investment & Trading Company Private LimitedNBFC · Primary
Published as Raja Devi Investment & Trading Company Private Limited
- Diamond Mutual Finance Private LimitedNBFC · Bulk Member
Published as Diamond Mutual Finance Private Limited
- Siddharth Finlease LimitedNBFC · Bulk Member
Published as Siddharth Finlease Limited
- Krishna Capfin LtdNBFC · Bulk Member
Published as Krishna Capfin Ltd.
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.