Action on Pentafour Commotrade
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 30 non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The named entities span multiple locations across India, and the order 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 Reserve Bank of India Act, 1934, RBI cancelled the Certificate of Registration of 30 named companies. The release states that, as a result, these entities shall not transact the business of a Non-Banking Financial Institution as defined in clause (a) of Section 45-I of the RBI Act, 1934.
Severity Assessment
Cancellation of Certificates of Registration is a license-cancellation action, which is severity 5 regardless of the number of entities involved.
All 30 affected companies lose their NBFC registration and cannot carry on non-banking financial institution business going forward. Customers and counterparties should expect those entities to cease NBFC operations, subject to any applicable wind-down or regulatory directions.
Published as Pentafour Commotrade Private Limited
Published as Laila Finance Limited
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Published as Nagavalli Financial Services Limited
Published as Parikshat Financiers limited
Published as Vishwa Gayathri Hire Purchase & Finance Limited
Published as Panjtan Sadbhawna Finance and Investment Company Private limited
Published as Sai Baba Hire Purchase Private limited
Published as Ambica Securities Private Ltd
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Published as Harshreya Tradecom Privte Limited
Published as Apurvam Tradelinks Private Limited
Published as Akash Patal Financial Services Private Limited
Published as D C Finance And Leasing Company Limited
Published as SRSL Securities Limited
Published as K B Fincap Private Limited
Published as Rachana Leasefin & Investment Limited
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