Case Brief
What Happened
The Reserve Bank of India, acting under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of 32 NBFCs. The order lists the affected companies and states that, as a result, they 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
- Not specified
- Order Date
- Unknown date
- Effective From
- 13 Dec 2018
- Entities Affected
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the RBI Act, 1934, the Reserve Bank of India cancelled the Certificates of Registration of 32 named companies. The release states that as such, 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 licence cancellation, which carries the maximum severity of 5 regardless of the absence of a monetary penalty.
Impact
All 32 named companies are prohibited from carrying on NBFC business going forward. Customers and counterparties should not rely on them for non-banking financial services after the respective cancellation dates stated in the release.
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
- 13 Dec 2018
Affected Entities
- Konkan Capfin LimitedNBFC · Bulk Member
Published as Konkan Capfin Limited
- Cheksons Broking Company Private LimitedNBFC · Bulk Member
Published as Cheksons Broking Company Private Limited
- Evergreen Trades & Finances Pvt. LtdNBFC · Bulk Member
Published as Evergreen Trades & Finances Pvt. Ltd.
- Surya Industrial Developments LtdNBFC · Bulk Member
Published as Surya Industrial Developments Ltd.
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.