We wish to inform you that the company had submitted an application in January 2025 to the Reserve Bank of India seeking certificate of Registration to operate as Type -1 Nin Bankung Financial ....
Awaiting price reaction for this filing.
Tirupati Fincorp Ltd informed BSE that the RBI has rejected its January 2025 application seeking a Certificate of Registration (CoR) to operate as a Type-I Non-Banking Financial Company - Non-Deposit taking (NBFC-ND). The RBI's order dated June 19, 2025 noted that the company's original CoR was cancelled back in January 2019 and it was instructed to wind down NBFI activities and bring financial assets below 50% of total assets within three years. Instead, the company increased its financial assets from Rs 28.71 crore (March 2022) to Rs 54.19 crore (March 2024), with financial income rising from Rs 2.78 crore to Rs 3.55 crore. As of December 2024, the company has Rs 218.25 crore in loans outstanding against Rs 220.81 crore in borrowings, making it unfit for a Type-I NBFC-ND structure. The RBI order also references a prior SEBI penalty of Rs 5 lakh each on the company and 15 directors (including current director Arvind Jethalal Gala) imposed in May 2022 for misutilisation of preferential issue proceeds. The RBI has directed the company to stop NBFI business immediately and pass a board resolution by July 11, 2025 confirming it will not carry out such activities without a valid CoR.
This is a materially negative development for shareholders — the company has been ordered to halt its core NBFI business with immediate effect, which is likely to disrupt its primary revenue stream and operations. Combined with the history of regulatory non-compliance, SEBI penalties, and CoR cancellation, this raises serious concerns about governance and the future business model of the company.