Both ECL Finance and Edelweiss Asset Reconstruction Company, upon which RBI put certain restrictions on Wednesday This order is with reference to the company's wholesale exposure. In the last financial year, the company passed a board resolution to discontinue this business, which was disclosed in its financial statements for the period ending March 31, 2024.
Indian shares inched lower
on Thursday as gains in banks were outweighed by losses in
information technology companies. The NSE Nifty 50 was down 0.2% at 22,649 points,
while the S&P BSE.
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.