Case Brief
What Happened
The Reserve Bank of India, exercising powers under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of 24 NBFCs named in the release. The order lists each company and the date on which its CoR was cancelled. Following the cancellation, the entities are prohibited from transacting the business of a Non-Banking Financial Institution under the RBI Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- New Delhi, Delhi
- Order Date
- 12 Mar 2019
- Effective From
- 12 Mar 2019
- Entities Affected
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration (CoR) of 24 companies under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release lists each company and its CoR cancellation date. As a consequence, 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 full licence/registration cancellation, which is a severity 5 action regardless of any other details.
Impact
The 24 named NBFCs must stop carrying on non-banking financial institution business. Customers, counterparties, and other stakeholders should treat the firms as no longer authorized to operate as NBFCs, and the cancellation takes effect from 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(a) of the RBI Act, 1934
Restrictions & Effective Timeline
- Effective From
- 12 Mar 2019
Affected Entities
- Sanket Investments & Marketing LimitedNBFC · Primary
Published as Sanket Investments & Marketing Limited
- Siddhanth Securities & Credits Private LimitedNBFC · Bulk Member
Published as Siddhanth Securities & Credits Private Limited
- Bharosemand Vyapaar (P) LtdNBFC · Bulk Member
Published as Bharosemand Vyapaar (P) Ltd.
- Proctor Marketing (P) LtdNBFC · Bulk Member
Published as Proctor Marketing (P) Ltd.
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.