Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 32 companies under Section 45-IA(6) of the RBI Act, 1934. The order covers multiple NBFCs across West Bengal, Gujarat, Uttar Pradesh and Delhi, and the release lists each company along with its registered office and cancellation date. RBI 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
- Kolkata, West Bengal
- Order Date
- Unknown date
- Effective From
- 5 Nov 2018
- Entities Affected
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificate of Registration of 32 companies. The release states that, as a result, the above 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 license cancellation, which is severity 5 under the rubric.
Impact
All 32 named companies must cease NBFC activity and cannot legally carry on business as non-banking financial institutions. Customers and counterparties dealing with these firms should expect that NBFC services are no longer permitted after the cancellation date.
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
- 5 Nov 2018
Affected Entities
- Elcon Finvest & Enterprises Pvt. LtdNBFC · Bulk Member
Published as Elcon Finvest & Enterprises Pvt. Ltd.
- Khaitan Urja Private LimitedNBFC · Primary
Published as Khaitan Urja Private Limited
- Jar Securities LimitedNBFC · Bulk Member
Published as Jar Securities Limited
- Lookad Finance & Leasing LimitedNBFC · Bulk Member
Published as Lookad Finance & Leasing Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.