Action on Unclassified entity
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 28 non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The release lists each company by name and office address, and states that they shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificate of Registration of 28 non-banking financial companies listed in the release. The order states that 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.
Severity Assessment
Cancellation of Certificates of Registration is a license cancellation, which is severity 5 regardless of monetary amount.
All 28 listed companies lose their RBI registration to operate as NBFCs and must stop transacting NBFC business. This affects the companies directly and prevents them from carrying on non-banking financial institution activities going forward.
Published as M/s Hindustan Products Limited
Published as M/s P.D. Commercials Private Limited
Published as M/s Vasundhara Leasing Private Limited
Published as M/s Chirawa Investment Ltd.
Published as M/s Pee Dee Kapur Financial Services Private Limited (formerly known as Dolphin Securities Private Limited)
Published as M/s Karupar Investments and Finance Private Limited
Published as M/s Badam Finance & Leasing Company Private Limited
Published as M/s OTS Finance Limited
Published as M/s Veerat Finance & Investment Limited
Published as M/s SMJ Securities And Finance Private Limited
Published as M/s Sher Securities Limited
Published as M/s Steel City Automotives Products Private Limited
Published as M/s Ranchi Finance Company Private Limited
Published as M/s Navin Motors Limited
Published as M/s Fortune Enterprises Private Limited
Published as M/s Nand Auto Hire Purchase Limited
Published as M/s Hem Tej Finance Private Limited
Published as M/s Sambandam Investment and Leasing Limited
Published as M/s Vamshadhara Finance Company Limited
Published as M/s Bhavishya Bharathi Financial Services Limited
Published as M/s Shrinkhla Finance And Investment Private Limited
Published as M/s Shree Kankaria Tea and Finance Company Limited
Published as M/s Patel Nigam Finance and Investment Private Limited
Published as M/s Chair Finance and Investment Pvt. Ltd.
Published as M/s Vishwa Gulab Financial Services Private Limited
Published as M/s Mansata Finance & Leasing Limited
Published as M/s B. Jajodia Financial & Management Services Pvt. Ltd
Published as M/s Uttam Leasing and Capital Services Limited