Nature of the Event
Five-Star Business Finance Limited has received a monetary penalty order from the Reserve Bank of India (RBI) - Enforcement Department. This disclosure is made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Key Quantitative Figures
The RBI has imposed a monetary penalty of ₹6,20,000 (₹6.20 lakhs) on the company.
Dates of Action
- Order Date: June 18, 2026
- Covering Notice Date: June 19, 2026
- Date of Receipt of Communication: June 19, 2026 at 16:00 hours (through email)
- Disclosure Date: June 20, 2026
Parties Involved
- Listed Entity: Five-Star Business Finance Limited
- Regulatory Authority: Reserve Bank of India (RBI) - Enforcement Department
- Company Representative: Vigneshkumar S M, Company Secretary & Compliance Officer
Violations Identified
The RBI identified the following contraventions:
- Failure to put in place appropriate software for effective identification and reporting of suspicious transactions
- Failure to disclose the approach for gradation of risk and rationale for charging different rates of interest to different categories of borrowers in the application forms and sanction letters
Financial Impact
The penalty imposed is quantified at ₹6.20 lakhs. The company explicitly states that "there is no material implication to the Company arising out of this order."
Period of Applicability
The communication applies to the financial year 2024-25.
Company Action
The company states: "The Company shall take necessary corrective action to address the issues."
Additional Information
The company confirms that no other relevant information needs to be disclosed beyond what is provided in the regulatory filing.
Certification
The disclosure includes a statement from Vigneshkumar S M, Company Secretary & Compliance Officer, confirming compliance with Regulation 30(13) of SEBI LODR Regulations and that the information provided is true, correct, and complete.