<p>New Delhi: Stock of Edelweiss Financial Services tumbled more than 14 per cent on Thursday after the Reserve Bank imposed business restrictions on Edelweiss Group's lending and asset reconstruction arms on concerns over evergreening of loans.</p>.<p>On the NSE, shares of Edelweiss Financial Services nosedived 14.53 per cent to trade at Rs 66.20 apiece.</p>.<p>The scrip of the company declined 14.45 per cent to Rs 66.26 on the BSE.</p>.Paytm stock jumps 5%; hits upper circuit limit for 2nd straight session.<p>Meanwhile, the 30-share BSE Sensex plunged 476.05 points to trade at 74,026.85, while the broader NSE Nifty fell 152.80 points to 22,551.90.</p>.<p>On Wednesday, the Reserve Bank of India (RBI) imposed business restrictions on Edelweiss Group's lending and asset reconstruction arms on concerns over evergreening of loans.</p>.<p>The central bank has asked ECL Finance Ltd (ECL) to cease and desist from undertaking any structured transactions in respect of its wholesale exposures, other than repayment and/or closure of accounts, RBI said.</p>.<p>In the case of Edelweiss Asset Reconstruction Company Ltd (EARCL), the RBI has asked the entity to cease and desist from the acquisition of financial assets, including Security Receipts (SRs) and reorganising the existing SRs, into senior and subordinate tranches.</p><p>Both the actions are with immediate effect, it added.</p>.<p>In the recent past, the RBI had flagged concerns around the Alternative Investment Funds (AIFs) being used for evergreening of loans and asked financiers to set aside more money for such investments.</p>.<p>However, Edelweiss ARC (Asset Reconstruction Company) said it is reviewing the RBI order and assured that it will address the observations mentioned in the RBI order.</p>.<p>"There will not be any material impact on the company's resolution and recovery efforts which would continue normally," Edelweiss ARC said in a statement on Wednesday.</p>.<p>"We are dedicated to maintaining transparency and upholding the highest standards of corporate governance and committed to compliance with regulatory requirements," it added. </p>
<p>New Delhi: Stock of Edelweiss Financial Services tumbled more than 14 per cent on Thursday after the Reserve Bank imposed business restrictions on Edelweiss Group's lending and asset reconstruction arms on concerns over evergreening of loans.</p>.<p>On the NSE, shares of Edelweiss Financial Services nosedived 14.53 per cent to trade at Rs 66.20 apiece.</p>.<p>The scrip of the company declined 14.45 per cent to Rs 66.26 on the BSE.</p>.Paytm stock jumps 5%; hits upper circuit limit for 2nd straight session.<p>Meanwhile, the 30-share BSE Sensex plunged 476.05 points to trade at 74,026.85, while the broader NSE Nifty fell 152.80 points to 22,551.90.</p>.<p>On Wednesday, the Reserve Bank of India (RBI) imposed business restrictions on Edelweiss Group's lending and asset reconstruction arms on concerns over evergreening of loans.</p>.<p>The central bank has asked ECL Finance Ltd (ECL) to cease and desist from undertaking any structured transactions in respect of its wholesale exposures, other than repayment and/or closure of accounts, RBI said.</p>.<p>In the case of Edelweiss Asset Reconstruction Company Ltd (EARCL), the RBI has asked the entity to cease and desist from the acquisition of financial assets, including Security Receipts (SRs) and reorganising the existing SRs, into senior and subordinate tranches.</p><p>Both the actions are with immediate effect, it added.</p>.<p>In the recent past, the RBI had flagged concerns around the Alternative Investment Funds (AIFs) being used for evergreening of loans and asked financiers to set aside more money for such investments.</p>.<p>However, Edelweiss ARC (Asset Reconstruction Company) said it is reviewing the RBI order and assured that it will address the observations mentioned in the RBI order.</p>.<p>"There will not be any material impact on the company's resolution and recovery efforts which would continue normally," Edelweiss ARC said in a statement on Wednesday.</p>.<p>"We are dedicated to maintaining transparency and upholding the highest standards of corporate governance and committed to compliance with regulatory requirements," it added. </p>