The RBI has taken the action against ECL Finance Ltd and Edelweiss Asset Reconstruction Company Limited under the SARFAESI and the Reserve Bank of India Act, 1934, RBI Imposed Business Restrictions on ECL Finance, Edelweiss Asset Reconstruction Company; Details Here
Both the companies have been directed to strengthen their assurance functions to ensure regulatory compliance in letter and spirit at all times, the RBI said.
The Reserve Bank of India (RBI) on Wednesday, May 24, has imposed business restrictions against ECL Finance Limited (ECL) and Edelweiss Asset Reconstruction Company Limited (EARCL), due to concerns regarding regulatory breaches and improper conduct by the entities. The RBI also found insufficient remedial measures taken by the entities to address these identified deficiencies.
The central bank has directed the 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.