Mumbai, Jan 17 (IANS): Edelweiss Financial Services stock price closed 5 per cent lower on Thursday, a day after Edelweiss Chairman and Chief Executive Officer Rashesh Shah appeared before officials of the Enforcement Directorate.

The company's share price has also suffered over reports that Edelweiss Subsidiaries' Independent Director Sanjay Nathalal Shah had connections with Capstone Forex, a transaction which is being inquired into.

Capstone Forex allegedly had outwardly remitted Rs 740 crore, without following proper procedure of Know Your Customer (KYC) norms.

Earlier, Rashesh Shah had written a personal note to assure stakeholders that Edelweiss has no relationship with Capstone Forex and dismissed all allegations of Foreign Exchange Management Act violations.

"You may have seen some media reports relating to Edelweiss. I am writing to you directly, to assure you that Edelweiss has no relationship with Capstone Forex Pvt. Ltd and all allegations of FEMA violations are false," Shah said, after being summoned by the ED.

He has assured full cooperation to the agencies. "We appreciate that regulators and agencies have an obligation to investigate; if any information is sought from us, as a responsible corporate citizen, we will of course provide the same."