FT's shares slump 11% on Sebi verdict

Shares of Jignesh Shah-promoted Financial Technologies tumbled 11 per cent today, a day after the stock market regulator rejected the application of MCX Stock Exchange (MCX-SX) to offer trading in new segments such as equities and equity derivatives.

Financial Technologies is a co-founder of MCX-SX, along with Multi Commodity Exchange (MCX). It owns 33.89 per cent of shares and warrants in the bourse.

Sebi’s order came after the market closed yesterday. FT’s stock, which opened at Rs 1,335 on the Bombay Stock Exchange (BSE), touched a low of Rs 1,215 during the day’s trade. It finally ended at Rs 1,221, down 11 per cent or Rs 150.90 from its previous close. The company’s shares were the second biggest loser on the BSE today.

The combined traded quantity in the cash market on the BSE and the National Stock Exchange (NSE) in the counter was nearly 2.5 million shares, with a turnover of Rs 308 crore.

“The stock has reacted to the lost opportunity for MCX-SX to offer trading in newer segments,” said Apurva Shah, head of research (institutional equities) at Prabhudas Lilladher.

At present, MCX-SX offers trading in currency futures. Sebi rejected the bourse’s application to deal in all other segments permitted to BSE and NSE, citing failure to comply with shareholding norms and illegal buyback agreements of its promoters, among other issues.

MCX-SX had said it was studying the Sebi order and would take legal counsel.