Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 25 NBFCs under Section 45-IA(6) of the RBI Act, 1934. The listed companies are spread across Delhi, Kolkata and Assam and include Hindon Investment Ltd., Shinam Estate & Finvest Private Limited, STS Finvestment Private Limited, Zuha Financial Services Limited, DBG Leasing and Housing Limited, and others. Following cancellation, the release explicitly says these companies shall not transact the business of a Non-Banking Financial Institution under Section 45-I(a) of the RBI Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Delhi, Delhi
- Order Date
- 30 Aug 2019
- Effective From
- 30 Aug 2019
- Entities Affected
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration of 25 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 a Certificate of Registration is a licence cancellation, which is a severity 5 action.
Impact
The 25 affected companies are no longer permitted to carry on NBFC business. They must stop undertaking non-banking financial institution activities, and customers/counterparties should not treat them as authorised NBFCs from the 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
- 30 Aug 2019
Affected Entities
- Shinam Estate & Finvest Private LimitedNBFC · Bulk Member
Published as Shinam Estate & Finvest Private Limited
- Zuha Financial Services LimitedNBFC · Bulk Member
Published as Zuha Financial Services Limited
- Kiran Securities Private LimitedNBFC · Bulk Member
Published as Kiran Securities Private Limited
- Hindon Investment LtdNBFC · Primary
Published as Hindon Investment Ltd.
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.