Edelweiss Group strongly refutes the entirely unfounded, baseless and false allegations of the Reliance ADAG Group with reference to the media statement released by Reliance ADAG Group on February 8, 2019.
Edelweiss Group had granted credit facilities against pledge of shares to Reliance ADAG Group. Over the last several months, Edelweiss Group has reached out numerous times to Reliance ADAG Group to address concerns on shortfall in margins (via regular margin call notices) and resultant fall in collateral valuation. Despite our best efforts, not only did Reliance ADAG Group fail to address any of the concerns raised by Edelweiss Group, but also continued to breach contractual obligations.
On 4th February 2019, there was a sharp drop in the prices of Reliance ADAG group shares, which led to further erosion in the collateral value. Edelweiss group once again gave due opportunity for remediation. Since there was no response from Reliance ADAG Group, it necessitated liquidation of the collateral as per the agreed contractual terms. Throughout this process, Edelweiss has acted in a lawful and responsible manner.
Edelweiss Group has, at all times acted responsibly, not only in safeguarding the interests of its investors but also in ensuring that market integrity is maintained.
Shares of Edelweiss Financial Services Ltd. was last trading in BSE at Rs.138.7 as compared to the previous close of Rs. 140.7. The total number of shares traded during the day was 82479 in over 1380 trades.
The stock hit an intraday high of Rs. 141.4 and intraday low of 136. The net turnover during the day was Rs. 11473687.