Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
6 Jul 2018
Case Brief
RBI exercised its powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificates of Registration of six companies: Makhariya Capital Limited, Senthil Finance Private Limited, GKSR Finance Private Limited, Magna Credit & Financial Services Limited, Sri Ponmani Finance Private Limited, and Indma Transworld Limited. The order means these entities are no longer permitted to transact the business of a Non-Banking Financial Institution under the Act.
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificates of Registration of six companies: Makhariya Capital Limited, Senthil Finance Private Limited, GKSR Finance Private Limited, Magna Credit & Financial Services Limited, Sri Ponmani Finance Private Limited, and Indma Transworld Limited. 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 six companies must stop NBFC business activities immediately and cannot legally operate as non-banking financial institutions. Customers and counterparties should no longer treat them as registered NBFCs for fresh financial business.
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
- 6
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Makhariya Capital Limited
M/s GKSR Finance Private Limited
NBFC
1 shared action
1 restriction
M/s Indma Transworld Limited
NBFC
1 shared action
1 restriction
M/s Magna Credit & Financial Services Limited
NBFC
1 shared action
1 restriction
M/s Senthil Finance Private Limited
NBFC
1 shared action
1 restriction
M/s Sri Ponmani Finance Private Limited
NBFC
1 shared action
1 restriction