Financial Tech clarifies on search operations by EOW

The stock up 3.5% at Rs 173 on the Bombay Stock Exchange

Financial Technologies (India) Limited (FTIL) clarified to exchanges that the search operations conducted by the Economic Offence Wing (EOW) at the residence of Jignesh P Shah, chairman and managing director of FTIL, on September 30, could have been due to Shah’s position as director on the board of National Spot Exchange Ltd (NSEL).   

In another announcement, the company said it had received a show cause notice from the Forward Markets Commission (FMC) on the status of the company as ‘Fit and Proper Person’ as a shareholder in MCX. However, it will reply to the notice in due course.

In response to an exchange query about the news on search operations, the company said, “It appears to us that EOW had conducted search operations on 30.09.2013 at the residence of the directors of NSEL including at the residence of Jignesh P Shah, chairman & managing director, FTIL.”

It added no official communication in this regard had been received by FTIL from EOW or NSEL. In a similar announcement made earlier related to the search conducted at the residence of directors of NSEL on September 30, the company said no search operations or raids were conducted by EOW at the corporate office of FTIL.

FTIL has been related with a crisis emerged in its subsidiary, NSEL. According to earlier reports, NSEL has been facing a payment crisis from July, when it was not able to make payouts to the investors. The crisis grew bigger later to a payment default of Rs 5,500 crore to the investors. This made the investors across the country panic.