Edelweiss Financial share price jumps 8% after CEO Rashesh Shah denies allegations of FEMA violation
BusinessToday.In January 13, 2020
Shares of Edelweiss Financial Services recovered from early losses and rose over 8% on Monday after the company said it has no relationship with Capstone Forex and all allegations of FEMA (Foreign Exchange Management Act) violations are false.
Recovering from a 5% fall, shares of Edelweiss Financial Services climbed 8.02% to an intraday high of Rs 114.5 on BSE. The stock traded in a wide range of Rs 13.7 today. Share price of Edelweiss Financial Services traded higher than 100-day moving averages but lower than 5, 20, 50 and 200-day moving averages.
Volume-wise, 4.5 lakh and 48.9 lakh shares traded on BSE and NSE counters, both higher than the stock's 5, 10 and 30-day average volume traded. Market depth data suggest 50% of buyers bidding against 50% offering the stock. The stock has fallen 1.3% in a week and over 4.5% in a month. It has gained over 1.5% year-to-date.
Rashesh Shah, Chairman, MD and CEO of the investment and financial services company in a clarification to the bourses said, "Media reports suggest that Sanjay Nathalal Shah, Chartered Accountant and an independent director of a few of our group companies, is alleged to be connected to Capstone."
The company will fully cooperate in the investigation, he added.
The company is compelled to take appropriate legal action against the concerned media group, in order to protect and reinforce the reputation of Edelweiss, Shah said.
"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," company's CMD said.
On Friday, shares of the Mumbai-based company crashed nearly 10% in intraday trade following media reports that ED summoned the group's chairman Rashesh Shah in a Rs 2,000 crore forex scam.