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Reserve Bank of India (RBI) has imposed business restrictions on two entities of the Edelweiss Group, including ECL Finance Ltd (ECL) and Edelweiss Asset Reconstruction Company Ltd (EARCL), for circumventing regulations.
Shares of Edelweiss Financial Services tanked over 17% in early deals today after the Reserve Bank of India (RBI) on May 29 announced supervisory actions against ECL Finance and Edelweiss Asset Reconstruction Company, citing material supervisory concerns. The banking regulator 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.
On May 29, the central bank announced supervisory actions against ECL Finance Limited and Edelweiss Asset Reconstruction Company Limited citing material supervisory concerns
The Reserve Bank of India (RBI) on May 29 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.
Edelweiss Financial Services' stock fell 17.36% to Rs 64 from the previous close of Rs 77.45 on the Bombay Stock Exchange. By 10:13 am, the stock was down 11.50% at Rs 68.55.