Edelweiss Financial Share Price Hits Two-Month High After RBI Lifts Ban From Group Firms
Since May 29 when RBI had imposed the restrictions, the Edelweiss Financial Services stock has risen 77%.
Edelweiss Financial Services Ltd.'s share price rose to hit its highest level since Oct. 1 at open, after the Reserve Bank of India lifted business restrictions on two group companies—ECL Finance Ltd. and Edelweiss Asset Reconstruction Co.—as the central bank was satisfied with remedial measures put in place by the companies.
However, the stock fell after hitting the high, snapping its two-day rally.
On May 29, the central bank imposed business restrictions on ECL Finance Ltd., which was directed to cease and desist 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.
Edelweiss Asset Reconstruction Co. was directed to cease and desist from acquisition of financial assets, including security receipts.
Since then, the stock has risen 77%.
"Subsequently, the companies engaged with Reserve Bank on the remedial measures to address the supervisory concerns," an exchange filing said.
"Now, having satisfied itself based on submissions and remedial measures put in place by these companies to address the concerns of RBI and their commitment to ensure adherence to the Regulatory Guidelines at all times and on an ongoing basis, the Reserve Bank has decided to lift the afore-mentioned restrictions placed on ECL Finance Limited and Edelweiss Asset Reconstruction Company Limited, with immediate effect."
Edelweiss Financial Services Share Price Today
The scrip rose as much as 2.75% to Rs 142.45 apiece, the highest level since Oct. 1. It slipped into losses to trade 1.15% lower at Rs 137.10 apiece, as of 10:23 a.m., compared to a 0.4% decline in the NSE Nifty 50.
It has risen 75.9% on a year-to-date basis. Total traded volume so far in the day stood at 1.18 times its 30-day average. The relative strength index was at 67.3.
