RBI Lifts Supervisory Restrictions on Edelweiss Group Entities
| Category | Details |
|---|---|
| Why in News | RBI removes restrictions on ECL Finance Ltd and Edelweiss ARC after compliance with regulatory norms. |
| Entities Affected | - ECL Finance Ltd: Restrictions on structured wholesale transactions lifted. - Edelweiss ARC: Restrictions on acquiring financial assets and reorganizing security receipts lifted. |
| Restriction Period | Imposed in May 2024 due to concerns over evergreening distressed loans. |
| Reason for Restrictions | Alleged use of "structured transactions" to mask stressed assets. |
| Compliance Measures | Entities implemented corrective actions and streamlined processes to adhere to RBI norms. |
| Market Impact | Edelweiss Financial Services Ltd share price rose by 7.76% to ₹138.80 on BSE. |
| Related Acts | - RBI Act, 1934: Regulatory framework for financial institutions. - SARFAESI Act, 2002: Governs recovery of loans through asset reconstruction. |