Multi Commodity Exchange, Financial Technologies share prices plunge 9 pct

Jan 01 2014, 13:54 IST
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Multi Commodity Exchange of India Ltd (MCX) share price tanked 8.8 per cent to Rs 431 on the BSE. Multi Commodity Exchange of India Ltd (MCX) share price tanked 8.8 per cent to Rs 431 on the BSE.
SummaryMulti Commodity Exchange, Financial Technologies share prices plunge after promoters asked to slash stake in former.

Shares of Multi Commodity Exchange of India Ltd (MCX) and Financial Technologies (India)(FTIL) today fell sharply by as much as 9 per cent after the board of MCX asked promoter FTIL to reduce its stake to 2 per cent, in accordance with the regulator's order.

MCX's scrip tanked 8.8 per cent to Rs 431 on the BSE.

Similarly, FTIL shares were down 6.67 per cent to 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 also charged Shah with being 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 was 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 yesterday 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.

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