Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
2 Aug 2005
Case Brief
The Reserve Bank of India cancelled the certificate of registration of Shabnam Leasing and Finance Limited, whose registered office is in New Delhi, on July 19, 2005. The cancellation was issued under Section 45-IA of the RBI Act, 1934, which empowers RBI to cancel the registration certificate of a non-banking financial company carrying on the business of a non-banking financial institution.
Why RBI Acted
On July 19, 2005, the Reserve Bank of India cancelled the certificate of registration issued to Shabnam Leasing and Finance Limited, New Delhi, for carrying on the business of a non-banking financial institution. The release cites Section 45-IA of the Reserve Bank of India Act, 1934 as the enabling provision for cancellation of the registration certificate of an NBFC.
Operating Impact
Shabnam Leasing and Finance Limited can no longer operate as a registered NBFC/non-banking financial institution. The company must cease the regulated activity covered by the cancelled registration, and counterparties/customers dealing with it in that capacity are affected from the effective date of cancellation.
Regulatory Basis
- Section 45-IA of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 19 Jul 2005
- Effective From
- 19 Jul 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC