The Reserve Bank of India has cancelled four non-banking financial companies' registration certificates (CoR).
These NBFCs are: the 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.
“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,” the Reserve Bank said in a statement.
13 NBFCs surrender CoR
Thirteen NBFCs surrendered their certificate of registration (CoR) issued by the RBI and were hence cancelled. Of the 13, companies such as Tamil Nadu-based Suguna Fincorp and West Bengal-based Spam Merchants surrendered their CoRs as they had exited the NBFC business.
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.. The four companies are based in Tamil Nadu.
The remaining companies were based in Tamil nadu, Maharashtra, and West Bengal. The companies ceased to be “legal entity due to amalgamation/merger/dissolution/ voluntary strike-off, etc,” said the RBI.
(By arrangement with livemint.com)