DBG Leasing and Housing Limited: RBI Enforcement History

Recorded RBI impact

License cancellation

License cancellation · Fresh imposition

Published by RBI

15 Nov 2019

Case Brief

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.

Why RBI Acted

Licensing breach

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.

Operating 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

Action Facts

Primary Impact: License cancellation
Order Date: 30 Aug 2019
Effective From: 30 Aug 2019
Entities Affected: 25
Entity Role: Bulk Member
Entity Type: NBFC

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DBG Leasing and Housing Limited

Case Brief

Why RBI Acted

Operating Impact

Regulatory Basis

Action Facts

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