Financial Technologies shares hit new low, bounce back

Written by PTI | Mumbai | Updated: Oct 22 2014, 21:08pm hrs
Financial Technologies India Ltd (FTIL) stocks slumped to their lowest trading permissible limit for the day but bounced back soon and rallied by over 9 per cent in a heavily volatile afternoon trade on bourses.

The government yesterday decided to merge crisis-ridden National Spot Exchange Ltd (NSEL) with holding group FTIL.

Following this, shares of FTIL went into a tailspin and slumped 20 per cent to Rs 135.75 -- its lowest trading permissible limit for the day -- on the BSE.

The stock later gained the lost ground and was trading with a rise of 9.43 per cent at Rs 185.65 on the BSE.

Similar trend was seen on the National Stock Exchange where the stock nosedived 20 per cent to hit its lower circuit limit of Rs 135.80. It was later trading with gains of 9.78 per cent on the exchange.

NSEL, which has been facing payment crisis, is promoted by Jignesh Shah-led Financial Technologies (India) Ltd.

Issuing a draft order for the proposed merger, the government today said the move has been decided upon in "public interest".

"The central government has decided on the merger of NSEL with its holding company FTIL, in public interest under Section 396 of the Companies Act, 1956," the Corporate Affairs Ministry said in a statement.

"In the face of a fraud of such a magnitude involving settlement crises of Rs 5,600 crore owed to over 13,000 investors on the trading platforms of NSEL, FTIL cannot seek to take refuge behind the corporate so as to unjustifiably isolate itself from the fraudulent actions that took place at NSEL resulting in such a huge payment crisis," the order said.