
The Reserve Bank of India (RBI) has announced the removal of supervisory restrictions imposed earlier this year on ECL Finance Limited and Edelweiss Asset Reconstruction Company Limited. The move comes after the RBI found the remedial measures adopted by the companies satisfactory, ensuring compliance with regulatory guidelines.
Back in May 29, 2024, the RBI had imposed restrictions on both entities under the powers of the Reserve Bank of India Act, 1934 and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002. ECL Finance was directed to cease structured transactions in wholesale exposures, while Edelweiss ARC was barred from acquiring financial assets and reorganising security receipts (SRs).
Following these directives, the companies actively engaged with the RBI and implemented corrective measures to address supervisory concerns. The central bank acknowledged these efforts and their ongoing commitment to regulatory compliance, leading to the immediate lifting of all restrictions.
This decision marks a significant positive development for the Edelweiss Group, reinstating normal business operations for both entities. The RBI emphasized the importance of continued adherence to regulatory guidelines to maintain financial discipline.