The Reserve Bank of India, has on July 19, 2005 cancelled the certificate of registration issued to Shabnam Leasing and Finance Limited having its registered office at 21-B1, Prem Nagar, Janakpuri, New Delhi-110 058 for carrying on the business of a non-banking financial institution.

Under powers conferred by Section 45-IA of the Reserve Bank of India Act, 1934, the Reserve Bank can cancel the registration certificate of non-banking financial company. The business of a non-banking financial institution is defined in clause (a) of Section 45-IA of the Reserve Bank of India Act, 1934.