Edelweiss Financial share price an outcome of a whistleblower complaint

The Ministry of Corporate Affairs has given the order to scrutinize the books of Edelweiss Asset Reconstruction Co (EARC).

As a result the stocks of Edelweiss Financial Services fell tremendously below the minimum price band. This refers that there are no buyers of the shares. The numbers of unsettled shares were 54,990 shares.

The complaint of the whistleblower was in relation to the fraudulent activities in the firm. The Prime Minister’s Office and the Reserve Bank of India received the complaint.

The description of the fraud incorporates the diversion of funds from EARC buy the Edelweiss group and its partner.

The Canadian partner Caisse de dépôt et placement du Québec (CDPQ) is a pension fund company. CDPQ did not give a response to the emails. However, the response of EARC mentions the contradiction of the complaint.

Paras Kuhad, the whistleblower made an accusation against the group and its partner of diverting Rs 1800 Crore from EARC.

He along with his family has a 14% stake in the EARC which amounts to Rs 45,000 crore in assets.

The result of the inspection of the books will give the foundation whether or not further continue the investigation. In case of criminality, the inspection will continue by MCA or the Serious Fraud Investigation Office.

Edelweiss Group is a financial services company which offers a wide range of financial products and services. These services include wealth management, advisory, insurance, and asset management services. Additionally, it offers investment advisory, private client broking, and more services to HNI, corporate and institutions.

The share price offer of Edelweiss Financial Services was Rs 80.15 at 11:00 am today.

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