Edelweiss Admits Hearing from ED, But Says No Transactions with Capstone Forex, Named in the Rs2,000 Crore Scam
The Edelweiss group in Friday accepted that it had received a communication from the Enforcement Directorate (ED) to appear and provide information about Edelweiss group companies' dealings with a company called 'Capstone Forex Pvt Ltd'. However, it says none of its companies have any transactions with Mumbai-based Capstone Forex, named in the Rs2,000 crore forex scam.
 
In a regulatory filing, Edelweiss Financial Services Ltd, says “We have received a communication from the ED to appear and provide information about Edelweiss group companies' dealings with a company called 'Capstone Forex Pvt Ltd' We would like to state that none of our companies have any transaction with this company - Capstone Forex Pvt Ltd. We further deny the wild baseless allegations contained in the news items which are apparently attributed to unidentified sources.”
 
 
Earlier in the day, a report from Business Today , said that the ED has summoned Edelweiss Group founder and chairman Rashesh Shah in connection with a forex scam worth Rs2,000 crore.  
 
 
In other report, IANS had said, the case pertains to violation of foreign exchange involving Capstone Forex, a Mumbai-based company. “Mr Shah did not turn up for questioning on 9 January 2020 and new summons has been issued against him.”
 
 
Edelweiss Financial ended Friday 10% down at Rs105.45 on the NSE, while the 50-share Nifty50 closed marginally up at 12,256.
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    COMMENTS

    Mohan Krishnan

    7 months ago

    They should be rewarded with Bharat Bond offers perpetually.

    Yes Bank: Uttam Agarwal Resigns as Independent Director
    Uttam Prakash Agarwal, an independent director and chairman of the audit committee of the board of Yes Bank has resigned, while making certain observations on the governance of the bank. While confirming the resignation, Yes Bank has said, its board was scheduled to review fit and proper status of Mr Agarwal, but before that he tendered resignation.
     
    In his resignation, as shared in a regulatory filing by Yes Bank, Mr Agarwal had said, "There are serious concerns as regards deteriorating standards of the corporate governance, failure of compliance, management practices and the manner in which the state of affairs of the Company are being conducted by Ravneet Gill, managing director and chief executive (MD/CEO), Dr Rajiv Uberoi- senior group president for governance & controls, Sanjay Nambiar, legal head and board of directors.  I have raised my concerns on these very critical matters from time to time in the overall interest of Yes Bank and millions of its small and large depositors, investors, shareholders and all other stakeholders."
     
    Mr Agarwal had also sent a dissent note through email on the decision to call for extra-ordinary general meeting (EOGM) by the bank for raising capital. 
     
    Yes Bank, in the regulatory filing, says the observations made by Mr Agarwal would be duly examined by its board. "...the Bank was reviewing the 'fit and proper' status of Mr Agarwal as directed by the Reserve Bank of India. In this respect, the Bank had obtained legal opinions from eminent jurists. These opinions were to be considered by the nomination and remuneration committee of the board (NRC) and the board of the Bank in their meetings scheduled for 10 January 2020. However, prior to the commencement of the proceedings of these meetings, the Bank received the resignation of Mr Agarwal."
     
    Interestingly, in November 2018, Hemindra Hazari, a well-known research analyst, had cautioned about appointment of Mr Agarwal as independent director of Yes Bank. In his blog post, Mr Hazari, had stated, "The immediate appointment of Mr Agarwal, a former president of the Institute of Chartered Accountants (ICAI), as an independent director and probable future head of the (Yes) bank's audit committee may not be the most appropriate choice. The concerned individual has dabbled in politics and failed to be elected from a suburb of Mumbai in a 2014 Maharashtra state election as a representative of a political party. Appointing chartered accountants-cum-politicians may not be the best way to restore confidence in the bank at such a critical stage."

    "While it is commonplace for corporate chiefs to cultivate the ruling party, it is not the normal practice for private sector banks, or private corporate sector entities in general, to nominate politicians as directors, as this adds an additional dimension of political risk. Investors should be cautious regarding Mr Agarwal, a chartered accountant-cum-politician, replacing Vasant Gujarathi on the audit committee. Indeed, Mr Agarwal may be even be appointed as the chairman of this important sub-committee of the board," Mr Hazari had written.

    What Mr Hazari wrote in 2018 became reality, when Yes Bank named Mr Agarwal as chairman of its audit committee of the board.
     
    As reported by Moneylife, FY2019 had marked a rather unsettling year for Yes Bank, more so for its directors. After the exit of Rana Kapoor, the Bank suffered an exodus of directors. In fact except Bharam Dutt and Subash Kalia, all other directors had resigned by end March 2019. (Read: Mass Exodus of Directors From Yes Bank in 3 Months)
     
    Yes Bank closed Friday 5.30% down on the BSE, while the 30-share Sensex ended the week marginally up at 41,599.
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    Axis Bank loses 15K staff in 9 months, hires 28K more
    Hit hard by the exodus of about 15,000 employees in the last nine months, leading private lender Axis Bank has gone on a hiring drive by adding some 28,000 employees on a gross basis to support its expansion drive into the Tier-II and III towns.
     
    According to industry insiders, automation as well as requirement of newer skill sets has accelerated the sector's attrition rate.
     
    However, such exodus should not come as a shock since the sector's attrition rates typically range between 20 per cent and 22 per cent.
     
    On a net basis, the bank, which at one point of time employed around 75,000 people, did hire about 12,800 employees from April till December, 2019.
     
    On its part, the lender said that its attrition rates have marginally inched-up from April till December 2019 to 19 per cent from 17 per cent during the corresponding period of the last fiscal.
     
    "The bank is expanding fast and last year has been a year of large number of new hirings; substantially higher numbers compared to last year both in gross as well as on net basis," Rajesh Dahiya, Executive Director, Axis Bank, was quoted as saying in a statement.
     
    "We have robust plans to add another 25,000 to 30,000 employees in Axis Bank and the subsidiaries in next 2 years or so," he added.
     
    Furthermore, the bank said that it plans to open 550 branches this financial year against 400 last year. 
     
    "We shall add another 4,000 more employees in the last quarter of FY20. Much of this is being hired in semi-urban and Tier II or III towns and rural India," Dahiya said.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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