FTIL shares down over 8% after NSEL’s first payout falls short
22 Aug 2013 11:00 PM GMT
Shares of Financial Technologies (India) Ltd (FTIL) ended over 8 per cent down after its subsidiary National Spot Exchange failed to meet the first tranche of payments to investors on Tuesday.
The scrip had fallen as much as 20 per cent to the day's low of Rs 113.05 on the BSE and recovered some lost ground to close at Rs 129.75, down 8.17 per cent.
On Tuesday, the National Spot Exchange (NSEL) had sacked its entire top management, including CEO Anjani Sinha, as the beleaguered bourse could manage to pay just over half of the first tranche payment of about Rs 175 crore to investors.
NSEL, promoted by Jignesh Shah-led Financial Technologies, has been barred from offering trade in any commodity following irregularities. It also sacked CFO Shashidhar Kotian and five others with immediate effect.
The Forward Markets Commission (FMC), the commodities regulator that is overseeing the settlement, wrote to the NSEL board, saying the default in the first tranche payment casts ‘serious doubts’ on the credibility of the exchange.
As the exchange failed to pay up the committed amount of Rs 174.72 crore, the NSEL Investors Fourm as well as brokers have threatened to take
legal remedy.
The scrip had fallen as much as 20 per cent to the day's low of Rs 113.05 on the BSE and recovered some lost ground to close at Rs 129.75, down 8.17 per cent.
On Tuesday, the National Spot Exchange (NSEL) had sacked its entire top management, including CEO Anjani Sinha, as the beleaguered bourse could manage to pay just over half of the first tranche payment of about Rs 175 crore to investors.
NSEL, promoted by Jignesh Shah-led Financial Technologies, has been barred from offering trade in any commodity following irregularities. It also sacked CFO Shashidhar Kotian and five others with immediate effect.
The Forward Markets Commission (FMC), the commodities regulator that is overseeing the settlement, wrote to the NSEL board, saying the default in the first tranche payment casts ‘serious doubts’ on the credibility of the exchange.
As the exchange failed to pay up the committed amount of Rs 174.72 crore, the NSEL Investors Fourm as well as brokers have threatened to take
legal remedy.
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