The Reserve Bank of India (RBI) has rejected the reappointment of Rajkumar Bansal as Edelweiss Asset Reconstruction Co’s (ARC) Managing Director and Chief Executive Officer.

“We hereby inform you that with regard to the re-appointment of Rajkumar Bansal, as Managing Director and Chief Executive Officer (MD and CEO) of the company, the RBI has communicated that the company’s request has not been acceded to,” Edelweiss ARC said in a stock exchange filing.

In May, the RBI imposed business restrictions on two Edelweiss Group entities, including Edelweiss ARC Ltd (EARCL) and ECL Finance Ltd for alleged violation of regulatory norms. EARCL has been ordered to stop the acquisition of financial assets, including security receipts (SRs) and reorganising the existing SRs into senior and subordinate tranches with immediate effect.