RBI Lifts Restrictions on Edelweiss Group Entities
By Rediff Money Desk, Mumbai Dec 17, 2024 20:26
The Reserve Bank of India has lifted restrictions imposed on two Edelweiss Group entities, ECL Finance and Edelweiss Asset Reconstruction Company, after they took remedial actions and committed to comply with regulatory guidelines.
Mumbai, Dec 17 (PTI) The Reserve Bank on Tuesday announced that restrictions imposed on two Edelweiss Group entities have been lifted.
The restrictions on ECL Finance and Edelweiss Asset Reconstruction Company have been lifted after both entities have taken the necessary remedial actions and committed to comply with regulatory guidelines on an ongoing basis, as per a statement.
The restrictions were imposed on May 29 this year, under which ECL was directed to cease and desist from undertaking any structured transactions in respect of its wholesale exposures, other than repayment and/ or closure of accounts in its normal course of business.
In the case of the other company, the ARC was directed to cease and desist from the acquisition of financial assets, including security receipts (SRs) and reorganising the existing SRs into senior and subordinate tranches.
"The companies engaged with the Reserve Bank on the remedial measures to address the supervisory concerns," the statement said.
The RBI lifted the restrictions as it is satisfied based on the submissions and remedial measures put in place by the two entities to address the central bank's concerns, it added.
The restrictions were imposed under the provisions of the Reserve Bank of India Act, 1934 and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI).
Edelweiss Financial Services shares closed nearly 8 per cent up at Rs 138.80 apiece on the BSE on Tuesday against a 1.30 per cent correction on the benchmark.
The restrictions on ECL Finance and Edelweiss Asset Reconstruction Company have been lifted after both entities have taken the necessary remedial actions and committed to comply with regulatory guidelines on an ongoing basis, as per a statement.
The restrictions were imposed on May 29 this year, under which ECL was directed to cease and desist from undertaking any structured transactions in respect of its wholesale exposures, other than repayment and/ or closure of accounts in its normal course of business.
In the case of the other company, the ARC was directed to cease and desist from the acquisition of financial assets, including security receipts (SRs) and reorganising the existing SRs into senior and subordinate tranches.
"The companies engaged with the Reserve Bank on the remedial measures to address the supervisory concerns," the statement said.
The RBI lifted the restrictions as it is satisfied based on the submissions and remedial measures put in place by the two entities to address the central bank's concerns, it added.
The restrictions were imposed under the provisions of the Reserve Bank of India Act, 1934 and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI).
Edelweiss Financial Services shares closed nearly 8 per cent up at Rs 138.80 apiece on the BSE on Tuesday against a 1.30 per cent correction on the benchmark.
Source: PTI
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