Kochar Financial Services Private Limited (Presently known as Shree Om Financial Services Limited): RBI Enforcement History

Recorded RBI impact

License cancellation

License cancellation · Fresh imposition

Published by RBI

9 Nov 2018

Case Brief

In exercise of powers under Section 45-IA(6) of the RBI Act, 1934, the Reserve Bank of India cancelled the Certificate of Registration of 31 companies. The entities include multiple NBFCs based mainly in Kolkata, along with firms in Kanpur, Agra/Aligarh, and Muzaffarnagar. As a result, the listed companies are barred from transacting 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 31 companies. The release states that the listed 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 affected companies must stop carrying on NBFC business. Customers and counterparties should treat them as no longer authorised to operate as non-banking financial institutions; the restriction applies to all 31 listed entities effective from the cancellation dates stated against each company.

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
Effective From: 12 Sept 2018
Entities Affected: 31
Entity Role: Bulk Member
Entity Type: NBFC

Entities similar to Kochar Financial Services Private Limited (Presently known as Shree Om Financial Services Limited)

Kochar Financial Services Private Limited (Presently known as Shree Om Financial Services Limited)

Case Brief

Why RBI Acted

Operating Impact

Regulatory Basis

Action Facts

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