The Reserve Bank of India (RBI) cancelled the registration certificates of four non-banking financial companies (NBFCs). In a statement issued on Friday, the central bank said that 13 other NBFCs had surrendered their registration certificates.
The banking regulator said the registration certificates of the four companies were cancelled under Section 45-IA (6) of the Reserve Bank of India Act, 1934.
The central bank cancelled the registration certificates of Rajasthan-based Bharatpur Investment Ltd, KS Finlease Limited, registered in Madhya Pradesh, Build Con Finance Limited, registered in Tamil Nadu, and Operating Lease and Hire Purchase Company Limited, registered out of Tamil Nadu.
“As such, the above companies 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,” said the Reserve Bank of India (RBI) in its statement.
Along with the cancellation report, the RBI also released another release stating that 13 NBFCs have surrendered their certificate of registration (CoR) granted by the central bank.
“The RBI, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has therefore cancelled their CoR,” said the banking regulator in the statement.
Out of the 13, companies such as Tamil Nadu-based Suguna Fincorp and West Bengal-based Spam Merchants surrendered their CoRs as they exited the NBFC business, according to the release.
Other companies such as Maham Holdings Private Limited, Padmalakshmi Holdings, Rohini Holdings, and Raghuvamsa Holdings failed to meet their prescribed criteria for unregistered Core Investment Company (CIC) that do not require registration, hence causing a cancellation of their CoR, according to the RBI data provided in the release. All four of the companies are based in Tamil Nadu.
The remaining seven out of the 13 companies which surrendered their CoR and led to cancellation were Umang Commercial Co Private Limited, Madura Micro Finance Limited, Dante Investments Private Limited, Canopy Finance Limited, Ma Kalyaneshwari Holdings Private Limited, Varahagiri Investments and Finance Private Limited, and Tamal Stationers Pvt. Ltd.
All of the remaining seven companies are based in West Bengal, Maharashtra and Tamil Nadu. The companies ceased to be “legal entity due to amalgamation/merger/dissolution/ voluntary strike-off, etc,” said the RBI in its release.
