Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 24 NBFCs under Section 45-IA(6) of the RBI Act, 1934. The release names each company and the respective cancellation order dates. Following the cancellations, the companies are not permitted to transact the business of a Non-Banking Financial Institution within the meaning of the RBI Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- New Delhi, Delhi
- Order Date
- Unknown date
- Effective From
- Unknown date
- 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 (CoR) of 24 companies. The order lists each company and its CoR/cancellation order date, and states that the above companies shall not transact the business of a Non-Banking Financial Institution as defined in clause (a) of Section 45-I of the RBI Act, 1934.
Severity Assessment
Cancellation of Certificate of Registration is a severity-5 licensing action that fully prevents the affected NBFCs from continuing as registered non-banking financial institutions.
Impact
All 24 named companies lose their registration to operate as NBFCs and must stop conducting NBFC business. This affects the companies directly and may affect counterparties and customers dealing with them as financial institutions; any ongoing NBFC activity is barred from the cancellation dates mentioned 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
Affected Entities
- Jewel Stationary Private LimitedNBFC · Primary
Published as Jewel Stationary Private Limited
- Bandana Securities LimitedNBFC · Bulk Member
Published as Bandana Securities Limited
- Delco Investment Company LimitedNBFC · Bulk Member
Published as Delco Investment Company Limited
- Ess AAR Finlease LimitedNBFC · Bulk Member
Published as Ess AAR Finlease Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.