Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
19 Jul 2018
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 29 companies under Section 45-IA(6) of the RBI Act, 1934. The listed entities include firms based in Mumbai, Thane, Kolhapur, Akola and Pune. Following cancellation, the companies are prohibited from carrying on business as a Non-Banking Financial Institution under Section 45-I(a) of the RBI Act, 1934.
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934 to cancel the Certificate of Registration (CoR) of 29 companies. The release lists each company and states that, as a result, the above 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
All 29 listed companies lose their NBFC registration and must stop transacting NBFC business. This directly affects the firms themselves and any customers or counterparties relying on their non-banking financial activities. The prohibition takes effect from the cancellation dates stated in the release (June 15, 2018 or June 28, 2018, depending on the company).
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
- Order Date
- 15 Jun 2018
- Effective From
- 15 Jun 2018
- Entities Affected
- 29
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to Prithvi Capital Markets Limited
Yashila Investment and Finance Company Private Limited
NBFC · Mumbai, Maharashtra
1 shared action
1 restriction
Credibility Financial Services Private Limited
NBFC · Mumbai, Maharashtra
1 shared action
1 restriction
Dubash Holdings Private Limited
NBFC · Mumbai, Maharashtra
1 shared action
1 restriction
Duracon Financial Services Private Limited
NBFC · Mumbai, Maharashtra
1 shared action
1 restriction
Godavari Corporation Private Limited
NBFC · Mumbai, Maharashtra
1 shared action
1 restriction