1:27 PM
alphaadvisory
Shares of Multi Commodity Exchange (MCX) and Financial Technologies fell
sharply on Friday after the board of MCX asked promoter FTIL to reduce
its stake to 2 per cent, in accordance with the regulator's order.
MCX fell as much as 9 per cent to Rs. 431, while FTIL shares fell 6.67 per cent to a low of Rs. 161.50.
Last week, the Forward Markets Commission (FMC) had issued an order declaring FTIL and its chief Jignesh Shah unfit to run any exchange, including the MCX, following a Rs. 5,600 crore payment crisis at group company National Spot Exchange Ltd (NSEL).
The regulator said Shah was the "highest beneficiary of the fraud perpetrated" at NSEL.
The NSEL, which is promoted by FTIL, has been defaulting on payments to 13,000 investors. It plunged into the payment crisis after halting trading in commodities from August 1 on a government directive.
The MCX board of directors at a meeting on Thursday decided to advise FTIL to implement the FMC order by reducing its stake in the company to 2 per cent or below from 26 per cent within a period of one month.
As of 12.55 p.m., MCX shares traded 3.75 per cent lower at Rs. 455, while FTIL traded 2.6 per cent lower at Rs. 168.50.
MCX fell as much as 9 per cent to Rs. 431, while FTIL shares fell 6.67 per cent to a low of Rs. 161.50.
Last week, the Forward Markets Commission (FMC) had issued an order declaring FTIL and its chief Jignesh Shah unfit to run any exchange, including the MCX, following a Rs. 5,600 crore payment crisis at group company National Spot Exchange Ltd (NSEL).
The regulator said Shah was the "highest beneficiary of the fraud perpetrated" at NSEL.
The NSEL, which is promoted by FTIL, has been defaulting on payments to 13,000 investors. It plunged into the payment crisis after halting trading in commodities from August 1 on a government directive.
The MCX board of directors at a meeting on Thursday decided to advise FTIL to implement the FMC order by reducing its stake in the company to 2 per cent or below from 26 per cent within a period of one month.
As of 12.55 p.m., MCX shares traded 3.75 per cent lower at Rs. 455, while FTIL traded 2.6 per cent lower at Rs. 168.50.
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