Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
30 Apr 2008
Case Brief
The Reserve Bank of India, by order dated April 3, 2008, cancelled the Certificate of Registration of M/s. Hexagon Capital Advisors Private Ltd. (formerly Hexagon Credits Private Limited), whose registered office was in Bangalore. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the company is not permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Hexagon Capital Advisors Private Ltd. (formerly Hexagon Credits Private Limited) under Section 45-IA(6) of the RBI Act, 1934. The release states that the company’s registration was cancelled for carrying on the business of a non-banking financial institution, and that following cancellation it cannot transact that business.
Operating Impact
The company must stop carrying on non-banking financial institution business. Counterparties and customers can no longer rely on it as an RBI-registered NBFC, and any such business activity after cancellation would be impermissible. The cancellation is effective from April 3, 2008.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 3 Apr 2008
- Effective From
- 3 Apr 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC