Edelweiss Financial Services shares fall 10% after ED summons Group chairman Rashesh Shah

Share price of Edelweiss Financial Services crashed nearly 10 per cent in intraday trade on the Bombay Stock Exchange (BSE) on Friday after ED summoned the group's chairman Rashesh Shah in an alleged forex scam.

The exchange has sought clarification from the company over the matter. The company is yet to issue official statement in this regard.

Reacting to the news, share price of Edelweiss Financial Services plunged as much as 9.98 per cent to hit an intraday low of Rs 105.50 against previous closing price of Rs 117.20 on the BSE. In contrast, the BSE Sensex was trading 46 points, or 0.11 per cent, lower at 41,498.

Earlier today, Edelweiss Financial shares opened higher at Rs 119.40 and touched an intraday high of Rs 119.80. However, the stock fell sharply after the news appeared in the media. The stock hit a 52-week high of Rs 210.30 on 4 June 2019, while it touched a 52-week low of Rs 67.10 on  the BSE on 11 October 2019.

Also Read: ED summons Edelweiss Group chairman Rashesh Shah in Rs 2,000 crore forex scam

There was surge in volume trade as 5.62 lakh shares changed hands over the counter as compared to two-week average volume of 1.73 lakh shares.

In a similar trend, shares of Edelweiss Financial Services were trading 9.99 per cent lower at Rs 105.45 apiece on the National Stock Exchange (NSE). The stock opened higher at Rs 118.45 against previous close of Rs 117.15 and touched a day's high and low of Rs 119.5 and Rs 105.45, respectively.

Also Read: Nifty hits fresh lifetime high of 12,311, Sensex surges 300 points on global optimism

Edelweiss Group is an investment and financial services company based in Mumbai. The parent company of the group is Edelweiss Financial Services Limited, co-founded by Rashesh Shah, Chief Executive Officer and Chairman.

By Chitranjan Kumar