 "Edelweiss Financial rises 3% as RBI lifts ban on two Edelweiss Group cos")
Edelweiss Financial Services share price: Holding company Edelweiss Financial Services rose as much as 3.35 per cent to hit an intraday high of Rs 143.45 per share on Wednesday, December 18, 2024.
However, at 10:25 AM, Edelweiss Financial Services shares were off highs and were trading 1.73 per cent lower at Rs 136.40. In comparison, BSE Sensex was trading 0.28 per cent lower at 80,462.01 levels.
The initial uptick in Edelweiss Financial Services share came after the Reserve Bank of India (RBI), with immediate effect, lifted the restrictions imposed on ECL Finance Limited, a wholly-owned subsidiary of the Company, along with Edelweiss Asset Reconstruction Company Limited.
In an exchange filing, Edelweiss Financial Services said, “We wish to inform you that the Reserve Bank of India (RBI), vide its letter dated December 17, 2024, has with immediate effect, lifted the restrictions imposed by RBI on ECL Finance Limited, a wholly owned subsidiary of the Company, vide its order dated May 29, 2024.”
Earlier this year on May 29, the RBI had, in exercise of its powers under the Reserve Bank of India Act, 1934 and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI), imposed business restrictions on the two entities of 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.
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Meanwhile, Edelweiss Asset Reconstruction Company Limited 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.
Subsequently, the companies engaged with the RBI on the remedial measures to address the supervisory concerns, Edelweiss Financial Services said.
“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,” the company said.
The market capitalisation of Edelweiss Financial Services is Rs 13,008 crore, according to BSE. The company falls under the BSE SmallCap category.
The 52-week high of Edelweiss Financial Services is Rs 145.50 while its 52-week low is Rs 59.40 apiece.