Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
17 Sept 2005
Case Brief
On September 12, 2005, the Reserve Bank of India cancelled the Certificate of Registration granted to Hallmark Leasing & Finance Limited, whose registered office is in Egmore, Chennai. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934. As a result, the company cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Hallmark Leasing & Finance Limited, Chennai, under Section 45-IA(6) of the RBI Act, 1934. The release states only that the company’s registration as a non-banking financial institution was cancelled; it does not specify any factual breach or detailed misconduct in the text provided.
Operating Impact
Hallmark Leasing & Finance Limited is barred from continuing NBFC activities following cancellation of its registration. The company must stop transacting as a non-banking financial institution, and counterparties/customers should no longer rely on it for such regulated business.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 12 Sept 2005
- Effective From
- 12 Sept 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC