Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
26 Sept 2018
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 30 companies under Section 45-IA(6) of the RBI Act, 1934. The listed entities include firms such as Polar Investments Ltd., Prime Investrade Limited, and Commercial Leasing Corporation Pvt. Ltd. Following the cancellation, the companies are not permitted to transact the business of a Non-Banking Financial Institution as defined under the RBI Act.
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 30 companies. The order 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.
Operating Impact
All 30 listed companies lose their NBFC registration and cannot carry on non-banking financial institution business. This prevents them from undertaking NBFC activities going forward, affecting their operations and any counterparties relying on those businesses.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 2 Aug 2018
- Effective From
- 2 Aug 2018
- Entities Affected
- 30
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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