Case Brief
What Happened
In exercise of powers under Section 45-IA(6) of the RBI Act, 1934, the Reserve Bank of India cancelled the Certificate of Registration of 32 named companies. The listed firms span Delhi, Kolkata, Haryana, Rajasthan and Uttar Pradesh locations. The release further states that these companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- New Delhi, Delhi
- Order Date
- Unknown date
- Effective From
- 10 Sept 2018
- 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 32 named companies. The release states that, as a result, these 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 licensing action that fully prevents NBFC operations, which is severity 5.
Impact
The 32 named companies are barred from carrying on NBFC business going forward. This removes their regulatory authorization to operate as non-banking financial institutions, affecting their ability to undertake financial intermediation and related activities.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I(a) of the RBI Act, 1934
Restrictions & Effective Timeline
- Effective From
- 10 Sept 2018
Affected Entities
- Shivbonanza Leasing and Finance Private LimitedNBFC · Bulk Member
Published as Shivbonanza Leasing and Finance Private Limited
- Shant Investments Private LimitedNBFC · Bulk Member
Published as Shant Investments Private Limited
- Sai Industries LimitedNBFC · Bulk Member
Published as Sai Industries Limited
- Indocon Finance & Investment LtdNBFC · Bulk Member
Published as Indocon Finance & Investment Ltd.
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.