 "RBI lifts restrictions on ECL Finance, Edelweiss ARC after compliance")
The Reserve Bank of India (RBI) on Tuesday said that it has lifted business restrictions imposed on ECL Finance and Edelweiss Asset Reconstruction Company (ARC) – both part of the Edelweiss Group – in May this year, after being satisfied with the remedial measures undertaken by the companies to address the central bank's concerns.
“…the companies engaged with RBI 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, RBI has decided to lift the restrictions placed on ECL Finance and Edelweiss ARC, with immediate effect,” RBI said in a statement.
RBI, in May this year, imposed business restrictions on the ECL Finance and Edelweiss ARC. ECL Finance 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.
Edelweiss ARC 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 has lifted with immediate effect the supervisory restrictions on ECL Finance and Edelweiss ARC, acknowledging their successful resolution of earlier concerns. This decision enables both companies to resume full business operations, reflecting their strong commitment to regulatory compliance and paving the way for sustained growth in the financial sector,” the company said in a statement.