The Reserve Bank of India (RBI) has decided to lift the restrictions placed on ECL Finance Ltd. and Edelweiss Asset Reconstruction Company Ltd., with immediate effect.
The RBI had on May 29, 2024 imposed business restrictions on these two supervised entities belonging to the Edelweiss Group.
ECL Finance Ltd. 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.
And Edelweiss Asset Reconstruction Company Ltd. was directed to cease and desist from acquisition of financial assets including security receipts (SRs) and reorganising the existing SRs into senior and subordinate tranches.
RBI in a circular on Tuesday said the companies were engaged with Reserve Bank on the remedial measures to address the supervisory 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, it has been decided to lift the restrictions placed on ECL Finance Ltd. and Edelweiss Asset Reconstruction Company Ltd., with immediate effect,” the banking regulator said.
Published - December 17, 2024 09:19 pm IST