What is NBFC – Registration, Documentation, Process & Cancellation - Legal Advisory Firm and Business Registration

Saturday, November 16, 2019

What is NBFC – Registration, Documentation, Process & Cancellation

A Non-Banking Financial Company, NBFC Registration is a company registered under the Companies Act, 1956 involved in the business of loans and credits, obtaining of shares/stocks/bonds/debentures/securities issued by Government or local administration or other commercial agreements of a like variety, leasing, hire-purchase, guarantee business, chit and fund business but does not constitute any business whose primary business is that of cultivation activity, manufacturing activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of permanent capital. 
A non-banking organisation which is a company and has the primary business of managing securities under any scheme or succession in one lump sum or parts by way of offerings or in any other practice is also a non-banking financial company (Residuary NBFC).

How to Obtain an NBFC License

There are specific requirements that the applicant organisation must fulfil to obtain the NBFC License
An application is required before the reserve bank of India along with the requisite documents on the website of the RBI (COSMOS). RBI may issue a notice in case it has any query concerning the application of NBFC submitted, respond to the notice promptly to avoid the rejection of the application. Well, Let’s have a deep dig to get the pre-conditions required to be followed to obtain an NBFC RBI Registration.

How to License is Issued by RBI for NBFC

NBFC License is issued under the terms of Section 45-IA of the RBI Act, 1934, no Non-banking Financial company can begin or carry on business of a non-banking financial institution without Getting a registration from the Reserve bank of India and without having a Net Owned Funds of ₹ 25 lakhs (₹ Two crore since April 1999).

Procedures for applying for NBFC Registration India

The applicant must file an online form in RBI’s secured website through COSMOS for the login page.
In the window, click on one excel sheet and download the application form.
The applicant shall indicate the correct name of the Regional Office in the field “C-8” of the “Annex-I identification Particulars” in the Excel application form.
After submission, the company will get a Company Application Reference Number for the Company registration application filed online.
At last, the applicant must get the print out of the application and submit the application form indicating the Company Application Reference Number, along with the required documents, to the concerned regional office of the Reserve Bank of India.
There are certain conditions that the applicant company must fulfil to get the NBFC Registration in India. An application is required to be made before RBI along with the requisite documents on the website of the RBI (COSMOS). RBI may issue a notice in case it has any query about the NBFC application submitted, respond to the notice promptly to avoid the rejection of the application. Let’s first understand the pre-conditions required to Register NBFC:

How to Get NBFC License from RBI

To get the NBFC registration with RBI, The applicant must file an online application in RBI’s secured website through COSMOS for the login page.
In the window, click on one excel sheet and download the application form.
The applicant shall indicate the correct name of the Regional Office in the field “C-8” of the “Annex-I identification Particulars” in the Excel application form.
After submission, the company will get a Company Application Reference Number for the Company registration application filed online.
At last, the applicant must get the print out of the application and submit the application form indicating the Company Application Reference Number, along with the required documents, to the concerned regional office of the Reserve Bank of India.

RBI Cancelled the License of which NBFC

Here find the list of cancelled NBFC (Non-Banking Finance Company) registrations by RBI Oct, 2019.
1- Dhanvarsha Finance & Leasing Co. Ltd. 
2 – DIAMONDHOME FINSERVE LIMITED (cancelled vide RD Orders LTD 10-09-2018)Gujarat
3 – Dinesh  Capital  (P)  LtdGujarat
4 – DISHA MICROFIN LIMITED (cancelled on conversion to SFB)Gujarat
5 – Dynemic Holdings Pvt. Ltd. 
6 – Elecon  Finlease  And  Industries  LtdGujarat
7 – Eriez Finance And Investment Ltd.Gujarat
8 – ESSENAR INVESTMENTS PVT. LTD. (cancelled vide RD Orders dtd 18-7-2018)Gujarat
9 – Ficon Lease & Finance Ltd.Gujarat
10 – For Testing – Dummy 
11 – For Testing – Dummy 
12 – Friends Mercantile Private LimitedGujarat
13 – Galaxy  Consolidated  Finance  LtdGujarat
14 – Gandhidham Fincap Ltd. (cancelled vide RD Orders dtd 18-7-2018)Gujarat
15 – Gangadhar  Lease  Finance  Pvt,  LtdGujarat
16 – Ganpat  Finvest  Services  Pvt.  Ltd (cancelled vide RD Orders dtd 18-7-2018)Gujarat
17 – Garden Finance Ltd – Merged with Garden Silk Ltd.Gujarat
18 – GAUTAM INFIN LIMITED (cancelled vide RD Orders dtd 18-7-2018)Gujarat
19 – GEERA FINANCE LTD.Gujarat
20 – Global  Securities  LtdGujarat
21 – GOLDMINE SHARES & FINANCE PVT LTDGujarat
22 – Gold Star  Lease  Financing  Ltd (cancelled vide RD Orders dtd 10-09-2018)Gujarat
23 – Goodluck Finstock & Leasing Ltd.Gujarat
24 – Goswamis Credits & Investment Private Limited (presently known as Goswamis Credits & Investment Limited) CoR cancelled vide Cancellation Order of ED dtd 4-4-2018Gujarat
25 – G.S.F.C. Investment  &  Leasing Company  Ltd – AmalgamationGujarat
26 – Gujarat  Arth  LtdGujarat
27 – Gujarat  Credit  Corporation  LtdGUJARAT
28 – Gujarat Financial  & Capital  Ltd (presently known as Gujarat Financial & Capital P Ltd) Cancelled vide CO Order dated March 16, 2018Gujarat
29 – Gujarat Gas Financial Services LtdGujarat
30 – GUJARAT LEASE FINANCING LTDGujarat
31 – GUJARAT STATE INVESTMENTS LIMITEDGujarat
32 – Gujarat Toll  Road   Investment  Co.  LtdGujarat
33 – Gujarat Venture Finance Limited 
34 – Gunjan Holdings Pvt.Ltd. (cancelled vide RD’s Order dtd 17-12-18 for not meeting minimum NOF as on 31-3-2017)Gujarat
35 – HARDIK FINANCE LIMITEDGujarat
36 – HARI-LEELA FISCAL PVT LTDGujarat
37 – Hindustan Finsecurities LtdGujarat
38 – Interface Financial  Services Ltd. 
39 – Jaihind Leasing & Finance LtdGujarat
40 – JALARAM FINVEST LTD.Gujarat
41 – Jaslene Finance Ltd.Gujarat
42 – Jayant  Security & Finance  LtdGujarat
43 – Jay Investment  Pvt LtdGujarat
44 – JHAVERI CREDIT & CAPITALS LIMITEDGujarat
45 – Kailash    Ficom  LimitedGujarat
46 – Kandla  Finance  LtdGujarat
47 – Kanubhai  Finance  LtdGujarat
48 – Kanvel  Finance  Pvt.  LtdGujarat
49 – Kargil Holdings Pvt. Ltd.Gujarat

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