Edelweiss Financial Services shares locked in 5% lower circuit

Shares of Edelweiss Financial Services, on Thursday, were locked in 5 per cent lower circuit at Rs 80.20 on the BSE on reports that the Ministry of Corporate Affairs (MCA) has ordered an inspection of the books of Edelweiss Asset Reconstruction Co (EARC).

The BSE said that "the Exchange has sought clarification from Edelweiss Financial Services on March 18, 2021, with reference to a news appeared in www.moneycontrol.com dated March 18, 2021 quoting "MCA orders inspection of Edelweiss Asset Reconstruction Company's books after whistleblower complaint to PMO". The reply is awaited."

According to the news report, the whistleblower --Paras Kuhad -- wrote to the Prime Minister’s Office (PMO) and the Reserve Bank of India (RBI) alleging that Edelweiss Group, the controlling shareholder of the ARC along with its partner Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), diverted at least Rs 1,800 crore from EARC.

Till 12:03 pm, a combined 10.6 million equity shares had changed hands and there were pending sell orders for 1.8 million shares on the NSE and BSE. The financial services company's stock has corrected 13 per cent from its 52-week high level of Rs 91.70, touched on Tuesday, March 16.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel