Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
28 May 2019
Case Brief
In exercise of powers under Section 45-IA(6) of the RBI Act, 1934, the Reserve Bank of India cancelled the Certificate of Registration of 12 companies. The order covers a mix of NBFCs, including Garnet Finance Limited, Shrikunj Financial Services Private Limited, Allied Commodities Private Limited, Venlon Securities Private Limited, Priyadarshini Consultancy & Services Private Limited, Prince Global Financial Services Limited, Prince Motor Finance Company Limited, Dipankar Properties & Investments Private Limited, Goldrich Agro Limited (presently known as Longtail Capital Limited), Unnati Mercantile Ltd., Mercury Investments Limited, and Carefree Investment Company Limited. Following cancellation, these entities are no longer permitted to transact the business of a Non-Banking Financial Institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration (CoR) of 12 companies in exercise of powers under Section 45-IA(6) of the RBI Act, 1934. The listed entities include Garnet Finance Limited, Shrikunj Financial Services Private Limited, Allied Commodities Private Limited, Venlon Securities Private Limited, Priyadarshini Consultancy & Services Private Limited, Prince Global Financial Services Limited, Prince Motor Finance Company Limited, Dipankar Properties & Investments Private Limited, Goldrich Agro Limited (presently known as Longtail Capital Limited), Unnati Mercantile Ltd., Mercury Investments Limited, and Carefree Investment Company Limited. As a result, these companies shall not transact the business of a Non-Banking Financial Institution as defined in the RBI Act.
Operating Impact
The affected companies lose their RBI registration and must stop carrying on NBFC business. Counterparties, borrowers, and other stakeholders should not treat them as authorised NBFCs after the stated cancellation dates; each entity is affected from its respective date of cancellation.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Effective From
- 4 Apr 2019
- Entities Affected
- 12
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to Unnati Mercantile Ltd
Shrikunj Financial Services Private Limited
NBFC · New Delhi, Delhi
1 shared action
2 restrictions
Allied Commodities Private Limited
NBFC · Secunderabad, Telangana
1 shared action
1 restriction
Carefree Investment Company Limited
NBFC · Secunderabad, Telangana
1 shared action
1 restriction
Dipankar Properties & Investments Private Limited
NBFC · Secunderabad, Telangana
1 shared action
1 restriction
Garnet Finance Limited
NBFC · Secunderabad, Telangana
1 shared action
1 restriction