FTIL to exit exchange business

To focus on technology; company rules out possibility of removing Jignesh Shah

Financial Technologies India (FTIL), the original promoter of National Spot Exchange (NSEL), has said it has taken a policy decision to exit from all  exchanges and focus on its core activity as a technology solutions provider.

“We are in the process of completely exiting from exchange-related businesses, most of which are sold. We are in the process of selling our stake in IEX,” said Venkat Chary, non-executive chairman of Financial Technologies, here on the sidelines of the company’s annual general meeting on Tuesday.

The company has appointed Axis Bank to help sell its stake in the Indian Energy Exchange (IEX), in which it holds about 25 per cent. Chary said while the deadline set by the board to sell the IEX stake is September 30, it could be overshot by a few weeks. “Many investors have shown interest in IEX and all are big names,” he added.

When asked whether the company would be able to mobilise Rs 1,000 crore by selling the stake, he refused to give any specific number, by saying: “It will be higher than what you are expecting.”

After exiting IEX, FTL plans to focus on technologies. With the Narendra Modi government at the Centre giving a lot of emphasis on technologies, it would open doors for companies such as FTL, Chary said.

A large portion of FTIL’s 1,500 employees are trained in this field and they have come up with a number of ideas, he added. According to him, the company’s experience in delivering mission critical technologies for financial markets would come in handy in capturing new markets.

Responding to a question on whether the board was considering removing FTIL promoter Jignesh Shah, Chary said: “We have full confidence on Jignesh Shah. He brought up this company and so many ventures. But unfortunately, this NSEL thing happened. He is an innovator and he continues to innovate.”

On FTIL’s opposition to the merger of National Spot Exchange with itself, he said: “I understand the chairman of Forward Markets Commission is going to demit office in a few days. I don't know whether you can put two and two together.”

He added: “We have said there are about 60,000 shareholders of FTL. The so-called investors forum has about 13,000 people, of whom 781 roam around in Mercedes-Benz cars, Justice Abhay Thipsay (of the Bombay High Court) have very clearly said they are bogus sellers and bogus buyers. How long would it have taken for the shareholders to form a forum and create ruckus in the court? The so-called investors don’t have a leg to stand on. Justice Abhay Thipsay’s judgment has clearly brought this out and that’s why there is complete silence now. The adverse campaign against the company for the past 10-11 months also disappeared after the judgment.”