RBI lifts business restrictions on ECL Finance, Edelweiss ARC after successful remedial measures

ECL Finance has been allowed to undertake structured transactions in wholesale exposures, and Edelweiss ARC has been permitted to acquire and reorganize financial assets

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

The Reserve Bank of India (RBI) said it has lifted supervisory restrictions imposed on two Edelweiss Group companies - ECL Finance Limited and Edelweiss Asset Reconstruction Company Limited, effective immediately, after they took remedial measures to address concerns raised by the central bank in May.

“Subsequently, the companies 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, the Reserve Bank has decided to lift” the restrictions with immediate effect,” the RBI said in a press release on December 17.

The restrictions were imposed in May, wherein the RBI had directed ECL Finance 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. It also asked Edelweiss Asset Reconstruction Company to cease and desist from acquisition of financial assets including security receipts (SRs) and reorganising the existing SRs into senior and subordinate tranches.

Going ahead, ECL Finance has been allowed to undertake structured transactions in wholesale exposures, and Edelweiss ARC has been permitted to acquire and reorganize financial assets, including security receipts (SRs), the Edelweiss Group said in a separate statement.

"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," it added.