FTIL chief asks shareholders to help him 'tide over bad phase'

Written by Press Trust of India | ENS Economic Bureau | Mumbai | Updated: Sep 26 2013, 13:41pm hrs
Managing director and CEO of MCX Stock Exchange, Joseph Massey, has withdrawn his consent for re-appointment as a director on the board of Multi-Commodity Exchange (MCX), despite calls by the chairman and CEO of its promoter company, Jignesh Shah, to shareholders to help him tide over this bad phase.

His announcement caps a day of fast-moving developments in the group, whose spot exchange, NSEL, has got enveloped in a payment crisis of Rs 5,500 crore, repeatedly falling short of the deadlines to make good the pay outs.

Meanwhile, stock market regulator Sebi confirmed that it had asked Financial Technologies (India) Ltd (FTIL), the promoter company of MCX and NSEL, to provide details why its auditor Deloitte Haskins & Sells had withdrawn its audit report certifying accounts of the company for FY13. Sebi will ascertain facts from the FTIL on the report, its whole-time member Rajeev Kumar Agarwal said.

MCX has also appointed two independent directors RM Premkumar and Ravi Kamal Bhargava as chairman of the board and chairman of the audit committee, respectively. Both are nominated on the bourses board by Forward Markets Commission (FMC), the exchange said in the filing.

In another development, a stormy annual meeting of FTIL deferred approval of three key resolutions in the wake of the auditors adverse reports. FTIL chairman Shah said Deloitte will recast the accounts and it is in our interest to do fast. Addressing the meeting amid heavy police presence due to protesting investors, Shah said that his reputation has been hit. We are pained that because of NSEL, market has to suffer ... Please understand that this company should not be judged by NSEL... Please dont take away credit of the institution what we have built, he said.

Meanwhile, in a circular, the FMC said, The practice of registration of intermediaries like depository participants, assayers and warehouses shall be discontinued forthwith. Also, the registration and the unique codes already issued to such intermediaries are hereby withdrawn. Henceforth, such intermediaries shall not use the registration/unique code issued by the commission.

NSEL issue: ICAI begins scrutiny

New Delhi: A day after auditors withdrew their report on the crisis-hit NSELs promoter Financial Technologies, accounting regulator ICAI on Wednesday said it has started looking into the issue and has sought details from the concerned stakeholders.

The income tax department has also started investigating as to whether NSEL violated tax rules while transferring funds to FTIL. ENS

FTIL shares fall over 10%

MUMBAI: Shares of Financial Technologies India Ltd (FTIL) on Wednesday settled 10.25 per cent at Rs 150.20 lower after its auditor said the companys financial statements for 2012-13 can no longer be relied upon. PTI