EARCL & ECL Assures Compliance With RBI Regulations In Exchange Filing
The Company has taken note of RBI’s guidance and will take necessary remedial steps as required immediately.
Edelweiss Asset Reconstruction Company in its exchange filing has acknowledged receipt of the order and its press release issued by the Reserve Bank of India (RBI) on its website dated 29 May 2024, under section 12(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, directing the Company to cease and desist from acquisition of financial assets.
The Company has taken note of RBI’s guidance and will take necessary remedial steps as required immediately.
“We are reviewing the order and will address the observations mentioned in the RBI order. We are dedicated to maintaining transparency and upholding the highest standards of corporate governance and are committed to compliance with regulatory requirements. There will not be any material impact on Company’s resolution and recovery efforts which would continue normally,” the company stated in the exchange filing.
The company has said that they assure that all their stakeholders that we are taking immediate steps to address the concerns raised by the RBI and to align our operations with regulatory expectations.
The Reserve Bank of India (RBI) has by an order dated 29 May 2024, directed the Company 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. These directions shall be reviewed by RBI upon satisfactory remediation of their observations.
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 31 March 2024.
“The Company, therefore, believes these directions will not materially impact its strategy and its business. Reduction of the wholesale exposure will continue as permitted, in the normal course of business. We reaffirm our commitment to complying with the RBI recommendations and hope to resolve this within three weeks, as directed by the RBI,” the company stated.
