Edelweiss Financial Services nosedives over 17.30% after RBI's stern action; get details
The RBI has taken strict action against ECL Finance and Edelweiss ARC, banning its structured transactions in wholesale exposure of ECL Finance. The RBI has also banned Edelweiss ARC's acquisition of new financial assets. Reorganisation of existing security receipts of Edelweiss ARC has also been banned by the central bank.
![Edelweiss Financial Services nosedives over 17.30% after RBI's stern action; get details](https://cdn.zeebiz.com/sites/default/files/2024/05/30/296581-stocks-markets-unsplash.jpg?im=FitAndFill=(1200,900))
Edelweiss Financial Services Share Price: Edelweiss Financial Services slid by over 17.30 per cent on BSE on Thursday (May 30, 2024) after the Reserve Bank of India took stern action against the mid-cap firm, banning its structured transactions in wholesale exposure of ECL Finance.
Edelweiss Financial that ended the session at Rs 77.45 a day ago started trading on Thursday at Rs 64.00, which was a 17.37 per cent slide from the previous close.
The stock rose to Thursday's high of Rs 70.80 later on.
Edelweiss Financial shares closed trading lower by 11.81 per cent, or Rs 9.15, at Rs 68.30 each on Thursday.
Why did RBI take action against Edelweiss Financial?
The RBI has taken strict action against ECL Finance and Edelweiss ARC, banning its structured transactions in wholesale exposure of ECL Finance.
The RBI has also banned Edelweiss ARC's acquisition of new financial assets.
Reorganisation of existing security receipts of Edelweiss ARC has also been banned by the central bank.
The central bank also found problem of non-compliance in loan to value ratio in loan against shares.
ECL Finance is accused of giving wrong information of debt book to lenders.
The RBI also found a case of wrong valuation of security receipt in investigation.
There has been wrong reporting of loan to CRILIC, and the RBI has also found flaws in following KYC norms.
The central bank alleged that its supervisory letter was not placed before the board of the company.
The RBI alleges that new ways were found to circumvent the rules instead of implementing them.
Statement of Edelweiss ARC
Edelweiss ARC said that it was reviewing the order and would address the observations mentioned in the RBI order. "We are dedicated to maintaining transparency and upholding highest standards of corporate governance and committed to compliance with regulatory requirements. There will not be any material impact on Company’s resolution and recovery efforts which would continue normally.
"We assure all our stakeholders that we are taking immediate steps to address the concerns raised by the RBI and to align our operations with regulatory expectations."
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
![https://www.zeebiz.com/personal-finance/photo-gallery-sip-swp-monthly-pension-income-retirement-corpus-planning-calculator-inr-rs-20000-monthly-investment-for-15-years-inr-99000-monthly-return-for-42-years-313283](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/09/06/316973-rupee-pixabay-take-1.jpg?itok=02-hJh59)
SIP+SWP: Rs 20,000 monthly SIP for 16 years to get Rs 99,000 monthly income for 42 years; how is it possible?
![https://www.zeebiz.com/market-news/news-bajaj-finserv-rvnl-borosil-renewables-carysil-railtel-corporation-stocks-to-buy-hdfc-securities-recommendation-picks-target-stop-loss-bse-nse-313386](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/09/06/317091-26.jpg?itok=gE1cWt7z)
RVNL, Bajaj Finserv and 5 more: Brokerage recommends buying these 7 stocks for up to 3 months | Check target, stop loss
![https://www.zeebiz.com/personal-finance/photo-gallery-nps-vs-ups-vs-ops-monthly-pension-income-retirement-corpus-calculator-what-will-be-your-pension-on-inr-rs-10000-contribution-for-35-years-expert-calculations-313361](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/09/06/317060-rupee-pixabay-take-2.jpg?itok=cOVdof_v)
NPS vs UPS vs OPS: What will be your monthly pension if you contribute Rs 10,000 monthly for 35 years? Get expert calculations
![https://www.zeebiz.com/personal-finance/photo-gallery-top-7-etf-sip-mutual-funds-in-5-years-calculator-how-inr-rs-21000-monthly-investment-has-grown-in-nifty-sp-bse-next-50-cpse-uti-icici-pru-nippon-india-motilal-oswal-bharat-22-nift-mid-infra-313306](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/09/06/316994-indian-currency-pixabay-take-1.jpg?itok=JURVEkst)
Top 7 ETF Mutual Funds With Highest SIP Returns in 5 Years: How Rs 21,000 monthly SIP has grown in each ETF over the years
![https://www.zeebiz.com/personal-finance/photo-gallery-sbi-senior-citizen-fd-fixed-deposit-latest-interest-rate-2024-calculator-what-be-maturity-amount-with-return-on-investments-of-inr-900000-lakh-in-1-3-5-year-guaranteed-return-scheme-retirement-planning-313221](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/09/06/316909-note-coin-pixabay-take-1.jpg?itok=3RPKcBYE)
SBI Senior Citizen FD Rates 2024: What you can get if you invest Rs 3 lakh, Rs 5 lakh, Rs 7 lakh, and Rs 9 lakh in 1-, 3-, and 5-year FDs
05:25 PM IST