Certificate of Registration - Cancelled

Case Brief

The Reserve Bank of India cancelled the Certificates of Registration of Chennai Financeco Limited and Shubham Financial Services Limited under Section 45-IA(6) of the RBI Act, 1934. The companies were registered to carry on the business of a non-banking financial institution, and the release explicitly says that after cancellation they cannot transact such business.

Action Snapshot

Primary Impact: License cancellation
Entity Type: NBFC
Location: Hyderabad, Telangana
Order Date

Unknown date

Effective From

Unknown date

Entities Affected

2

Why RBI Acted

Licensing breach

The Reserve Bank of India cancelled the Certificates of Registration granted to Chennai Financeco Limited and Shubham Financial Services Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that, following cancellation, the companies cannot transact the business of a non-banking financial institution.

Severity Assessment

Cancellation of an NBFC Certificate of Registration is a licence cancellation, which carries severity 5.

Impact

Both companies are barred from carrying on non-banking financial institution business going forward. The restriction directly affects the two entities and their ability to operate as NBFCs; customers and counterparties dealing with them in that capacity would need to stop or unwind such activity.

Regulatory Basis

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

Affected Entities

Chennai Financeco Limited
Published as Chennai Financeco Limited
NBFC · Primary
Shubham Financial Services Limited
Published as Shubham Financial Services Limited
NBFC · Bulk Member