Financial Technologies plunges 9.5% on BSE

Shares of the MCX Stock Exchange's promoter Financial Technologies today tumbled over 9 per cent in the early trade to hit a month low on the BSE, a day after the market regulator Sebi rejected the stock exchange's application for a full-fledged bourse status.

Reacting sharply to the Sebi's move, shares of Financial Technologies (FTIL) tanked 9.46 per cent in the start of the session to a four-week low of Rs 1,242 on the Bombay Stock Exchange (BSE).

Yesterday, Sebi had rejected the plea of MCX Stock Exchange Ltd (MCX-SX), saying shareholding norms had been violated and that its promoters lacked honesty.

FTIL shares also witnessed a steep decline on the National Stock Exchange and plunged 9.37 per cent to a low of Rs 1244.30.

"The fall in the shares is just the knee-jerk reaction as the investors became nervous after the Sebi rejected the MCX-SX application," CNI Research CMD Kishore P Ostwal said.

MCX-SX is promoted by India's largest commodity bourse MCX and another group company FTIL, and currently offers trading in currency futures only.

In April, MCX-SX had applied to deal in interest rate derivatives, equity, futures and options on equity and wholesale debt segments and all other segments where BSE and NSE have a presence.

Meanwhile, the 30-share benchmark Sensex also started the day on a weak note for the third consecutive session and was trading at 19,833.52, down 27.49 points from the previous close.