Edelweiss group chairman dismisses allegations of violating foreign exchange regulations

Edelweiss group chairman dismissed allegations that it violated foreign exchange regulations and its independent director was linked to it.

"All allegations of FEMA violations are false," said Rashesh Shah, Chairman & CEO, Edelweiss Group said in a press release. We appreciate that regulators and agencies an obligation to investigate."

"If any information is sought from us, as a responsible corporate citizen, we will of course provide the same," he said.


Capstone Forex allegedly created a bogus list of tourists and remitted forex overseas. Edelweiss boss Rashesh Shah was asked to join Enforcement Directorate probe citing alleged links.

The group denied any relationship with Capstone.

"Let me reiterate that he has no other association with the Edelweiss Group, nor is he in any way related to me," the chairman said.

A source told ET that the independent director's distant relative is likely connected with Capstone.

Media reports suggested that Sanjay Nathalal Shah, chartered accountant and an independent director of a few Edelweiss group companies, is alleged to be connected to Capstone.

"I was unable to go in person to the Directorate of Enforcement (ED), our senior authorised representative did attend in person with the requisite information," Shah said in the note.

He promised to cooperate any such investigation whenever it is required.

Edelweiss is a home-grown professional financial services group built over 25 years by more than 11,000 employees and 2 million customers. The group has many large, Indian and foreign customers, investors and partners as the company cities endorsing ita governance standards.

"We remain committed to the highest governance standards, built on a strong foundation of ethics," said the group chairman.