Mumbai: The Reserve Bank of India (RBI) on Wednesday said it has imposed supervisory actions against ECL Finance Limited and Edelweiss Asset Reconstruction Company (ARC) citing material supervisory concerns.
Both the entities belonging to the Edelweiss Group were found circumventing the regulations. The RBI directed ECL Finance Ltd (ECL) to cease and desist, with immediate effect, 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 Limited (EARCL) to cease and desist from acquisition of financial assets including security receipts (SRs) and reorganising the existing SRs into senior and subordinate tranches.
The above directions will have immediate effect, the RBI said.
