Case Brief
What Happened
In this release, the Reserve Bank of India cancelled the Certificate of Registration of 32 companies under Section 45-IA(6) of the RBI Act, 1934. The affected entities are various NBFCs listed in the notice, and RBI further stated that they shall not transact the business of a Non-Banking Financial Institution under Section 45-I(a) of the RBI Act, 1934.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Not specified
- Order Date
- Unknown date
- Effective From
- Unknown date
- Entities Affected
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the Reserve Bank of India 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 the Certificate of Registration is a licence cancellation action, which carries the maximum structural severity of 5 regardless of any monetary amount.
Impact
All 32 named companies lose their CoR and cannot carry on NBFC business going forward. Customers, counterparties, and other stakeholders should not treat them as authorised to conduct non-banking financial institution activities after the cancellation date stated for each company.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Affected Entities
- I. C. Finance Private LimitedNBFC · Bulk Member
Published as I. C. Finance Private Limited
- Hail Finvest Private LimitedNBFC · Bulk Member
Published as Hail Finvest Private Limited
- Garima Dealcomm Private LimitedNBFC · Bulk Member
Published as Garima Dealcomm Private Limited
- Soneko Securities Private LimitedNBFC · Bulk Member
Published as Soneko Securities Private Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.