India Investigates Irregularities at Edelweiss’ ARC Arm
(Bloomberg) -- Edelweiss Financial Services Ltd. said it hasn’t received any intimation that Indian regulators have ordered a probe of its asset reconstruction unit for irregularities, after its shares plunged by the daily limit in Mumbai.
Moneycontrol had earlier reported on the alleged investigation, and people with direct knowledge of the matter told Bloomberg News that the corporate affairs ministry has ordered an inspection of the firm’s books of accounts. The people declined to be identified as the matter isn’t public.
“Edelweiss Asset Reconstruction Company Ltd. has not received any intimation of any inspection being conducted by the Ministry of Corporate Affairs,” Edelweiss Financial said in its statement. “EARC is in full compliance with the applicable laws.”
A spokesman for the finance and corporate affairs ministry didn’t immediately respond to calls made to his mobile.
The communication follows a request for clarification from the stock exchange. Edelweiss Financial’s stocks were down by the 5% limit as of 1:17 p.m. in Mumbai on Thursday compared with a 0.3% drop in the benchmark index.
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