Action on Hem Textile & Trading Co.
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 26 NBFCs under Section 45-IA(6) of the RBI Act, 1934. The order lists the affected companies and states that they shall not transact the business of a Non-Banking Financial Institution as defined in the Act.
In exercise of powers under Section 45-IA(6) of the RBI Act, 1934, RBI cancelled the Certificate of Registration of 26 named companies. The release states that, as a result, these companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Severity Assessment
Cancellation of Certificate of Registration is a license cancellation, which carries severity 5 regardless of the absence of a monetary penalty.
All 26 named companies lose their CoR and must stop NBFC activity. This prevents them from carrying on non-banking financial institution business going forward; the action affects the companies directly and, indirectly, their customers and counterparties relying on such services.
Published as M/s Bee Tee Credit & Marketing Private Limited
Published as M/s Kar Commercials Private Limited
Published as M/s Bakliwal Fintex Pvt. Ltd.
Published as M/s Samridhi Finance Limited
Published as M/s Raj Comfin Private Limited
Published as M/s Lakshmi Vishnu Investment Limited
Published as M/s Ravi Marketing & Services Pvt. Ltd.
Published as M/s Radio Supply Stores (Cinema) Private Limited
Published as M/s Esskayed Fiscal Services Pvt. Ltd.
Published as M/s Amulya Nidhi (India) Limited
Published as M/s Enfield Suppliers Limited
Published as M/s Dhanbad Finance Private Limited
Published as M/s Amroha Trade Fin Limited
Published as M/s Hem Textile & Trading Co. Pvt. Ltd.
Published as M/s Kopal Motor and General Finance Limited
Published as M/s Bamba and Company Limited
Published as M/s Treegun Finance and Leasing Limited
Published as M/s Regal Finance Company Private Limited
Published as M/s Swagatham Investment Limited
Published as M/s Mourya Finance Limited
Published as M/s Anweshan Commercial (P) Ltd.
Published as M/s Amrit Bhagwanti Investment Private Limited
Published as M/s New Mech Vyapaar (P) Ltd.
Published as M/s Raj Projects Private Limited
Published as M/s Melinex Traexim Pvt. Ltd
Published as M/s Shivambika Leasings Private Limited