Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
17 Aug 2015
Case Brief
RBI cancelled the Certificate of Registration of seven NBFCs under Section 45-IA(6) of the RBI Act, 1934. The affected entities are Artisans Micro Finance Private Limited, Religare Finance Limited, Nott Investments (P) Ltd., Eden Trade & Commerce Pvt. Ltd., RCS Parivar Finance Limited (formerly known as Pawansut Merchants Ltd.), Swetasree Finance (P) Ltd., and Dewra Stocks & Securities (P) Ltd. After cancellation, these companies are prohibited from transacting the business of a non-banking financial institution under Section 45-I(a) of the Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of seven non-banking financial companies in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The named companies include Artisans Micro Finance Private Limited, Religare Finance Limited, Nott Investments (P) Ltd., Eden Trade & Commerce Pvt. Ltd., RCS Parivar Finance Limited (formerly known as Pawansut Merchants Ltd.), Swetasree Finance (P) Ltd., and Dewra Stocks & Securities (P) Ltd. Following cancellation of registration, these companies cannot transact the business of a non-banking financial institution as laid down under clause (a) of Section 45-I of the RBI Act, 1934.
Operating Impact
All seven affected NBFCs must stop carrying on NBFC business. Customers and counterparties should no longer treat them as RBI-registered NBFCs for new non-banking financial institution transactions.
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
- Effective From
- 2 Mar 2015
- Entities Affected
- 7
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Swetasree Finance (P) Ltd
M/s Artisans Micro Finance Private Limited
NBFC · New Delhi, Delhi
1 shared action
1 restriction
M/s Dewra Stocks & Securities (P) Ltd
NBFC · New Delhi, Delhi
1 shared action
1 restriction
M/s Eden Trade & Commerce Pvt. Ltd
NBFC · New Delhi, Delhi
1 shared action
1 restriction
M/s Nott Investments (P) Ltd
NBFC · New Delhi, Delhi
1 shared action
1 restriction
M/s RCS Parivar Finance Limited (formerly known as Pawansut Merchants Ltd.)
NBFC · New Delhi, Delhi
1 shared action
1 restriction