Religare Enterprises clarifies on NBFC licence cancellation

After the registration certificate of seven NBFCs, including that of Religare Finance, were cancelled by RBI yesterday, Religare Enterprises today clarified that Religare Finance was non-operative and had voluntarily surrendered its licence.
In a BSE filing, it said, "We would like to inform that Religare as a Group had NBFC licenses in two of its entities, namely Religare Finvest Limited and Religare Finance Limited.
"We conduct our SME lending business through Religare Finvest Limited. The other NBFC -- Religare Finance Limited -- was a non-operative, dormant entity through which no business was being conducted."
It added: "We, therefore, decided to voluntarily surrender this NBFC licence and accordingly applied to RBI to cancel the licence."

It said RBI has accepted company's surrender application and has accordingly cancelled the licence of Religare Finance Limited vide its order dated April 8, 2015.
"Our SME focused NBFC, Religare Finvest Limited, continues to carry on the lending business," it added.
Meanwhile, Religare Enterprises shares today ended 0.64 per cent up at Rs 305.75 apiece on the BSE.