Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
10 Jun 2016
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of three non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The entities named are M/s Escorts Finance Limited, M/s Express Trading & Securities Private Limited, and M/s Jayant Security and Finance Limited. With the cancellation in force, these companies are no longer permitted to transact the business of a non-banking financial institution under the Act.
Why RBI Acted
The RBI cancelled the certificate of registration of three NBFCs in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The listed companies are M/s Escorts Finance Limited, M/s Express Trading & Securities Private Limited, and M/s Jayant Security and Finance Limited. The release states that following cancellation of the registration certificate, these companies cannot transact the business of a non-banking financial institution as defined under clause (a) of Section 45-I of the RBI Act, 1934.
Operating Impact
These three NBFCs lose their regulatory registration and cannot conduct NBFC business going forward. Customers and counterparties should no longer treat them as authorised non-banking financial institutions for new business, lending, or related financial activity.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Entities Affected
- 3
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Express Trading & Securities Private Limited