Financial Technologies slips after government order merger of NSEL

The stock slipped 16% to Rs 76.70, its lowest level since November 2004 on the BSE in early morning trade.

Financial Technologies (India) Limited (FTIL) has slipped 16% to Rs 76.70, its lowest level since November 2004 on the BSE in early morning trade after the government ordered the merger of crisis-hit National Spot Exchange Ltd (NSEL) with the company.

“The final order was passed after a high level meeting chaired by Economic Affairs Secretary Shaktikanta Das that reviewed the steps taken to recover money in the Rs 5,574 crore payment crisis that erupted at NSEL -- part of Jignesh Shah-led FTIL group -- in late 2013,” the PTI report suggests. CLICK HERE TO READ FULL REPORT.

Reacting to the development, FTIL said the final order is "highly disappointing" and it places the interest of trading clients higher than that of the shareholders of a listed company.

"Ministry of Corporate Affairs has also chosen to ignore the thousands of representations made by the shareholders, its creditors and hundreds of employees of FTIL and NSEL," it said in a statement.

FTIL will challenge the merger of order before the Hon’ble High Court at the earliest, and is confident that justice will be done, it added.

At 09:32 AM, the stock was down 8% at Rs 82.50 on the BSE. A combined 626,604 shares changed hands on the counter on the BSE and NSE so far.