SEBI settles case against Edelweiss Capital for Rs 15 lakh

Market regulator SEBI today settled and passed a consent order in a case against Edelweiss Capital on payment of Rs 15 lakh for the company's alleged failure to exercise due diligence in conducting business as a merchant
banker.

The case relates to incidences of Edelweiss Capital not adopting independent professional judgements in verifying the records and not providing correct information in Draft Red Herring Prospectus of its clients, among others.
SEBI, however, did not provide details regarding the clients.

 "The Noticee (Edelweiss Capital) has remitted a sum of Rs 15 lakh...this consent order disposes of the said proceedings...," the Securities and Exchange Board of India (SEBI) said while passing the consent order.

In a consent order, the company or person pays the settlement fee without denying or admitting the guilt. SEBI had last year appointed an adjudication order to look into the alleged violations.

Even as the proceedings were in progress Edelweiss has in October 2010 made an application for settlement of proceedings through a consent order without admitting or denying the guilt.