Reserve Bank of India has stopped Edelweiss Asset Reconstruction Co. from acquiring any stressed assets, according to a supervisory action notification on Wednesday.
Edelweiss ARC has been asked to stop acquisition of stressed assets with immediate effect, including security receipts and re-organising the existing SRs into senior and subordinate tranches.
In its notification, the regulator also barred ECL Finance from undertaking any structured transactions, with respect to its wholesale exposures, with immediate effect. However, it can continue to conduct repayment and/or closure of accounts.