Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
27 Jul 2018
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of seven NBFCs under Section 45-IA(6) of the RBI Act, 1934. The affected entities are Shree Luxmi Narayan Trexim Private Limited, Thirdwave Financial Intermediaries Ltd, Vidhyabalaji Finance & Investments Private Limited, Sanspareil Finance Limited, Nambi Investments & Finance Private Limited, MCM Investments and Finance Limited, and Ishara Finance & Rural Development Private Limited. Following the cancellations, these companies are not permitted to carry on the business of a Non-Banking Financial Institution under the RBI Act.
Why RBI Acted
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 seven companies registered as NBFCs. 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
Each of the seven companies must stop NBFC საქმიანity and cannot continue operating as a non-banking financial institution. Customers and counterparties should no longer treat these entities as authorised NBFCs; any ongoing NBFC business must cease subject to applicable legal and resolution requirements.
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
- Entities Affected
- 7
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Ishara Finance & Rural Development Private Limited
M/s MCM Investments and Finance Limited
NBFC
1 shared action
1 restriction
M/s Nambi Investments & Finance Private Limited
NBFC
1 shared action
1 restriction
M/s Sanspareil Finance Limited
NBFC
1 shared action
1 restriction
M/s Shree Luxmi Narayan Trexim Private Limited
NBFC
1 shared action
1 restriction
M/s Thirdwave Financial Intermediaries Ltd
NBFC
1 shared action
1 restriction