RBI lifts curbs on two Edelweiss Group companies – CNBC TV18
The Reserve Bank of India (RBI) on Tuesday (December 17) said it has removed business restrictions that had been imposed on two Edelweiss Group entities — ECL Finance Ltd and Edelweiss Asset Reconstruction Company Ltd (Edelweiss ARC).
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The decision, effective immediately, follows the companies’ successful implementation of remedial measures to address regulatory concerns.
“Now, having satisfied itself based on submissions and remedial measures put in place by these companies to address the concerns of RBI and their commitment to ensure adherence to the Regulatory Guidelines at all times and on an ongoing basis, the Reserve Bank has decided to lift the afore-mentioned restrictions placed on ECL Finance Limited and Edelweiss Asset Reconstruction Company Limited, with immediate effect,” RBI said in a press release.
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After extensive engagement with the apex bank and demonstrating compliance with regulatory guidelines, both entities addressed the supervisory issues raised. Satisfied with the corrective steps and their ongoing commitment to regulatory adherence, RBI lifted the restrictions, allowing the entities to resume normal operations.
In May 2024, RBI restricted ECL Finance from undertaking structured transactions involving wholesale exposures, except for account closures or repayments in the normal course of business.
Edelweiss ARC was barred from acquiring financial assets, including security receipts (SRs), and reorganising existing SRs into senior and subordinate tranches under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI).
Shares of Edelweiss Financial Services Ltd ended at ₹138.80, up by ₹10, or 7.76%, on the BSE.
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(Edited by : Shoma Bhattacharjee)
