Edelweiss Financial spurts by 4 pc after denying FEMA violations

The share price of Edelweiss Financial Services rose by nearly four per cent on Monday afternoon after the company clarified that it has no relationship with Capstone Forex Pvt Ltd and all allegations of Foreign Exchange Management Act (FEMA) violations are false.

"I would like to personally reiterate that these allegations are false and we remain committed to the highest governance standards, built on a strong foundation of ethics," said Chairman and CEO of Edelweiss Group Rashesh Shah.

"We take our responsibilities as good corporate citizens extremely seriously. We find our strength in the unshaken trust reposed by our customers, shareholders, partners and employees," he said in a statement.

Recent reports had suggested that Sanjay Nathalal Shah, Chartered Accountant and an independent director of some Edelweiss group companies, is alleged to be connected to Capstone.

"Let me reiterate that he has no other association with the Edelweiss Group, nor is he in any way related to me. You will appreciate that Shah is a common name," said Rashesh Shah.

The Directorate of Enforcement had recently summoned him in connection with the company's dealings with Capstone Forex.

At 12:30 pm, Edelweiss Financial Services was trading 3.96 per cent up at Rs 110.20 per share.

Edelweiss is a home-grown professional financial services group with more than 11,000 employees and two million customers.