Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
10 May 2016
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of four NBFCs under Section 45-IA(6) of the RBI Act, 1934. The named entities are M/s Neelanjali Engineering Private Limited, M/s Novoflex Tradecom Private Limited, M/s Guide Investments and Trading Co. Pvt. Ltd., and M/s Enol Ventures Private Limited. The cancellation means these companies cannot transact the business of a non-banking financial institution as defined under Section 45-I(a) of the Act.
Why RBI Acted
The RBI cancelled the Certificate of Registration of four non-banking financial companies in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As a result, the companies are no longer permitted to transact the business of a non-banking financial institution under clause (a) of Section 45-I of the Act.
Operating Impact
The four companies are barred from conducting NBFC business from the cancellation dates mentioned in the release. Customers, borrowers, and counterparties should no longer treat them as authorized NBFCs for new transactions or ongoing NBFC activities.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I(a) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 18 Feb 2016
- Effective From
- 18 Feb 2016
- Entities Affected
- 4
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Guide Investments and Trading Co. Pvt. Ltd