Sree Gadhaiya Finance & Overseas Limited: RBI Enforcement History

Recorded RBI impact

License cancellation

License cancellation · Fresh imposition

Published by RBI

30 Jul 2018

Case Brief

The Reserve Bank of India cancelled the Certificates of Registration of 35 companies under Section 45-IA(6) of the RBI Act, 1934. The order lists 35 NBFCs, many based in Chennai and other Tamil Nadu locations, and states that the affected companies shall not transact the business of a Non-Banking Financial Institution as defined in the RBI Act. This is a fresh cancellation action affecting all 35 named entities.

Why RBI Acted

Licensing breach

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 of 35 named companies. As a result, these entities are no longer permitted to transact the business of a Non-Banking Financial Institution as defined under clause (a) of Section 45-I of the RBI Act, 1934.

Operating Impact

Each of the 35 companies is barred from carrying on non-banking financial business going forward. They must cease NBFC operations and cannot legally transact as non-banking financial institutions after the respective cancellation dates stated in the release.

Regulatory Basis

Section 45-IA (6) of the Reserve Bank of India Act, 1934
Section 45-I(a) of the RBI Act, 1934

Action Facts

Primary Impact: License cancellation
Order Date: 4 Jun 2018
Effective From: 4 Jun 2018
Entities Affected: 35
Entity Role: Bulk Member
Entity Type: NBFC

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Sree Gadhaiya Finance & Overseas Limited

Case Brief

Why RBI Acted

Operating Impact

Regulatory Basis

Action Facts

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