20 NBFCs, Including Reliance and IDFC, Surrender CoR Following Mergers and Exits
20 NBFCs, Including Reliance and IDFC, Surrender CoR Following Mergers and Exits
IDFC Ltd, IDFC Financial Holding Company Ltd, and 16 other entities have surrendered their CoR because they are no longer recognized as legal entities due to mergers or amalgamations
The Reserve Bank of India (RBI) announced on Friday that 20 non-banking financial companies, including Reliance Commercial Finance and IDFC Limited, have relinquished their certificate of registration (CoR).
It is important to note that some of these companies have either left the non-banking sector or have been dissolved as a result of mergers.
Among these, two companies, Manoway Investments Private Limited and Reliance Commercial Finance Limited, have given up their CoR after exiting the non-banking financial sector.
IDFC Ltd, IDFC Financial Holding Company Ltd, and 16 other entities have surrendered their CoR because they are no longer recognized as legal entities due to mergers or amalgamations.
Additionally, the RBI announced the cancellation of the Certificate of Registration for 17 non-banking financial companies, as stated in another announcement from the central bank.
Several NBFCs with cancelled licenses were based in West Bengal.
In a different announcement, the RBI confirmed that it has reinstated the license of Kamdhenu Finance Company Pvt Ltd following the decisions made by the Appellate Authority and the Courts.
A Non-Banking Financial Company (NBFC) is defined as a company that is registered under the Companies Act of 1956 and primarily involved in activities such as providing loans and advances, acquiring shares, stocks, bonds, debentures, and other marketable securities issued by the government or local authorities. It also engages in leasing, hire-purchase, insurance, and chit fund operations. However, it excludes any institution whose main focus is on agricultural or industrial activities, the buying or selling of goods (excluding securities), or the provision of services related to the sale, purchase, or construction of real estate.
