Action on 30 NBFCs
Case Brief
RBI, acting under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of 30 NBFCs named in the press release. The order covers multiple companies across Delhi, Kolkata, Haryana and elsewhere, and the release makes clear that these entities may not transact the business of a Non-Banking Financial Institution under Section 45-I(a) of the RBI Act.
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificate of Registration (CoR) of 30 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 Certificates of Registration is a licence cancellation action, which is severity 5 regardless of any operational consequences.
All 30 listed companies are prohibited from carrying on NBFC business going forward. This affects their ability to undertake non-banking financial activities and signals that they must cease such operations immediately; the restriction applies to the named entities only.
Published as Supra Industrial Resources Limited
Published as Shree Dhan Finance And Investment Company Limited
Published as S.K. Mittal Finance & Investment Private Limited
Published as Subhlabh Capital Services Limited
Published as Welltime Investments Private Limited
Published as Saya Finlease Private Limited
Published as Sanyog Fin-lease Private Limited
Published as Sriyash Securities Private Limited
Published as Rainbow Traders Pvt. Ltd.
Published as Kothari Capital & Securities Private Ltd.
Published as Monica Credit & Financial Services Limited
Published as J. D Motor Finance Limited
Published as Shilpi Leasing Pvt. Ltd.
Published as Sewastuti Finance Private Limited
Published as Skylark Leasing Limited
Published as Y.P. Finance & Securities Private Limited
Published as Sekhawati Capital Finlease Private Limited
Published as Sonakshi Finlease Limited
Published as Surge Trading & Finance Private Limited
Published as Zeel Fincap Services Private Limited
Published as Caps Finstock Services Private Limited
Published as Nikunj Agro Trading Company Limited
Published as Magnus Finance Private Limited
Published as MSD Finance Company Limited
Published as Manu Credits & Finance Private Limited
Published as Chandra Vidya Investment & Finance Private Limited
Published as Orchard Consultancy Services Private Limited
Published as Premier Capital & Securities (P) Ltd.
Published as Sundaram Consultant Private Limited
Published as Sempitern Securities Pvt. Ltd.