Action on Business India Securities and Finance
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 30 companies under Section 45-IA(6) of the RBI Act, 1934. The companies listed in the release are therefore no longer permitted to transact the business of a Non-Banking Financial Institution under Section 45-I(a) of the RBI Act, 1934.
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration of 30 named companies. The release states that, as a result, the 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 licence cancellation, which is severity 5 regardless of the number of entities affected.
The 30 named companies must stop carrying on NBFC business. This directly affects the companies and their customers/counterparties who may have existing financial relationships with them.
Published as Business India Securities and Finance Ltd
Published as Dhanipa Management Services Private Limited
Published as Futuristic Securities Limited
Published as Gorgeous Chemicals Export Private Limited
Published as J D & Co. Private Limited
Published as Kanoi Capital Holdings Limited
Published as Mahashree Trading Ltd
Published as Memani Investment & Finance Private Limited
Published as Mahalaxmi Holdings Limited
Published as Rajput Finance Limited
Published as W B Finlease And Industries Private Limited
Published as Trends Holdings and Consultancy Private Limited
Published as Salome Investments Private Limited
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