RBI Lifts Restrictions on Edelweiss Group Entities

The Reserve Bank of India has lifted restrictions on ECL Finance and Edelweiss Asset Reconstruction Company after they implemented remedial actions and committed to ongoing regulatory compliance. The initial restrictions, imposed in May, were due to supervisory concerns related to structured transactions and asset acquisitions.

The Reserve Bank of India (RBI) lifted restrictions on two entities from the Edelweiss Group, indicating their adherence to necessary remedial actions and ongoing regulatory commitments.

The restrictions, originally imposed in May, involved directives for ECL Finance to halt structured transactions, and for Edelweiss Asset Reconstruction Company (ARC) to cease acquiring financial assets.

The lifting of these restrictions follows successful engagements between the companies and the RBI, satisfying the central bank of their compliance with supervisory guidelines. Edelweiss Financial Services shares responded positively, closing nearly 8% up on the BSE.

(With inputs from agencies.)