Edelweiss Financial Services Ltd. on Tuesday said it has received a communication from the Enforcement Directorate to represent and appear before it on Wednesday.
The development follows a statement by Edelweiss Chairman Rashesh Shah stating that the firm has no relationship with Capstone Forex, which is being investigated by the Enforcement Directorate for foreign exchange rules violation.
"The company has received a communication from the Office of the Enforcement Directorate to represent and appear before them on Jan. 15, 2020, and the company shall do the needful," Edelweiss said in a filing to BSE on Tuesday.
In a previous regulatory filing, Shah said the allegation of forex rules violation is "false" and that the company will fully cooperate in the investigation.
The Enforcement Directorate had recently summoned Shah in connection with the company's dealings with Capstone Forex Pvt. Ltd.
"I am writing to you directly to assure you that Edelweiss has no relationship with Capstone Forex Pvt. ltd and all allegations of FEMA violations are false,” Shah had said.
The chairman also said that he was unable to go in person to Enforcement Directorate and has authorised senior representative had attended in person with the requisite information.
"Needless to say, if in the future any assistance or support to the investigation is requested from us, we will cooperate fully," he had added. Shah also denied media reports of him having any relation with Sanjay Nathalal Shah, chartered accountant and an independent director of a few of the group companies.
"Let me reiterate that he (Sanjay Nathalal Shah) 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," he had said.
Shah also accused the media of sensational reporting on "false allegations".
The company will take appropriate legal action against the concerned media group in order to protect and reinforce the reputation of Edelweiss, he had said.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
