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Informist, Tuesday, Dec. 17, 2024

--RBI removes supervisory restrictions on ECL Finance, Edelweiss ARC 

MUMBAI – The Reserve Bank of India has lifted the business restrictions imposed on ECL Finance Ltd. and Edelweiss Asset Reconstruction Co. Ltd. with immediate effect, the central bank said in a release Tuesday. On May 29, the RBI had barred both the entities from certain operations after material concerns arose during supervisory examinations.

"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 central bank said.

ECL Finance had been directed to stop undertaking any structured transactions with respect to its wholesale exposures other than repayment and closure of accounts in its normal course of business. Edelweiss Asset Reconstruction was barred from acquiring financial assets, including security receipts and reorganising existing security receipts into senior and subordinate tranches, the release said. End

Reported by Vaishali Tyagi

Edited by Akul Nishant Akhoury

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