Action on Unclassified entity
Case Brief
The RBI cancelled the Certificates of Registration of 34 named non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The order covers multiple entities across different locations and states, and the release explicitly says they shall not transact the business of a Non-Banking Financial Institution as defined in the RBI Act.
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, the RBI cancelled the Certificate of Registration of 34 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 full licence cancellation, which carries severity 5 regardless of any other factors.
Each of the 34 companies is barred from carrying on NBFC business going forward. This affects the companies themselves and their counterparties/customers to the extent any NBFC activity must cease or be wound down in compliance with the cancellation order.
Published as Fountain Head Mercantiles Private Limited
Published as Gannayak Trades Private Limited
Published as Ambica Instalments Limited
Published as Reed Finance Private Limited
Published as Arihant Chemicals Industries Ltd.
Published as JRD Finance Limited
Published as Bee Ess Financial Services Private Limited
Published as Khalsa Finance Company Private Limited
Published as Balada Finvest Ltd.
Published as Hytone Merchants Pvt. Ltd.
Published as R.D. Leasing and Finance Services Limited
Published as Narang Merchandise Private Limited
Published as A & P Exim Private Limited
Published as Mudra Fintrade Pvt. Ltd.
Published as P.H Builders Private Limited
Published as Cyphone Tracon Private Limited
Published as Giriwar Impex & Holdings Private Limited
Published as Fairdeal Merchants Private Limited
Published as Mohanka Exports Private Limited
Published as Century Polytex Limited
Published as Narlapur Finance & Investments Limited
Published as Agarwal Motor Finance Pvt. Ltd.
Published as Maryn Industries (P) Ltd.
Published as Prabha Mercantile Company Limited
Published as B.L. Fiscal Private Limited
Published as Hail Securities & Investments Private Limited
Published as Sahuwala Investments Private Limited
Published as Webno Financiers Pvt. Ltd.
Published as A.S.D. Consultants Limited
Published as Oswal Corporate Market Private Limited
Published as Panny Leasing & Credit Private Limited
Published as B.T.G Investments Private Limited
Published as Thukral Industrial Investments Private Ltd.
Published as Herbert Holdings Limited