Shares of Edelweiss rise post Chairmans clarification

The shares of Edelweiss Financial Services jumped after the Chairman of the Company, Rashesh Shah confirmed that they have no relation with the currency exchange service-Capstone Forex.

Notably, the Company made the statement in the light of the investigation conducted by Enforcement Directorate (ED) for the violation of foreign exchange rules. The ED had summoned Rashesh Shah in connection with the dealings of Edelweiss Financial Services with Capstone Forex.

In a BSE filing, Rashesh Shah said that the allegation of Foreign Exchange Management Act (FEMA) is false and also added, that the company will fully cooperate in carrying out the investigation. The Chairman conveyed the same message to the shareholders via a letter. He also denied media reports of him or his company on having any relation with Sanjay Nathalal Shah, an independent director of nine companies, who is also registered with Ministry of Corporate Affairs (MCA).

Not only this, the chairman accused media of sensational reporting, stating that the company will take strict actions against the concerned media group in order to ‘protect and reinforce the reputation of Edelweiss’. 

At 12.02 pm, the share of Edelweiss Financial Services is trading on BSE at Rs 110.10, up by 0.14 per cent, against its previous close of Rs 109.95. The market opened at the same rate, which is at Rs 109.95 on January 14, 2020 (Tuesday) but is seeing a rise thereupon.