One more FTIL director resigns

Press Trust of India Posted online: Friday, Oct 25, 2013 at 0000 hrs
New Delhi : Financial Technologies today said Chandrakant Kamdar has resigned from its board as director, amid continuing payment crisis in group firm NSEL.

The company has appointed retired IAS officer A Nagarajan as additional director (non-executive and independent) on the board of the company, it said in a BSE filing.

Nagarajan has worked as Special Chief Secretary and Development Commissioner in Tamil Nadu.

Earlier on October 11, FTIL had appointed former FMC Chairman Venkat Chary and retired judge R J Kochar as additional directors on its board, after a series of resignations of top officials in the aftermath of the Rs 5,600 crore payment crisis at its group firm NSEL.

Five directors -- CM Maniar, N Balasubramanian, R Devarajan, PR Barpande and T C Nair-- had quit FTIL.

Another group firms MCX, MCX-SX is also witnessing churning at the top management level following the crisis at NSEL.

National Spot Exchange Ltd (NSEL), promoted by Jignesh Shah-led FTIL, is facing the problem of settling Rs 5,600 crore dues to 148 members after it suspended trade on July 31 on government direction.

The bourse plans to settle the entire dues in 30 weeks time, by paying Rs 174.72 crore every week for first twenty weeks, followed by Rs 86.02 crore every week in the next ten weeks.

So far, NSEL has defaulted for 10 times and is able to settle about Rs 180 crore against Rs 5,600 crore dues.