Financial Technologies' stock up on HC directive

Madras HC today ordered Company Law Board to take a final decision in three months on FTIL's merger with its subsidiary National Spot Exchange Ltd

The share price of Financial Technologies (India) (FTIL) hit the upper circuit on Monday on the BSE. This was after reports that the Madras High Court gave the Company Law Board (CLB) three more months to take a call on superseding the board of FTIL for the payment default of its subsidiary National Spot Exchange Ltd (NSEL). The  union ministry of corporate affairs had ordered merger of NSEL with the parent FTIL and supersede the board of FTIL.

Now, CLB will hear the case on January 13. However, the market viewed this as a case for merging NSEL with FTIL. The merged entity would come clean on past issues and hence share prices went up sharply.

FTIL share opened steady at Rs 99.05 apiece and remained traded in a close range of Rs 5 until mid-day. Immediately after the order of the court, FTIL stock jumped. Within few minutes, FTIL stock hit the upper circuit to Rs 119.50 apiece, which showed a gain of 19.98 per cent from previous close.

Total volume of traded shares was reported at 0.97 million on BSE worth Rs 9.71 crore. On the National Stock Exchange (NSE), however, 7.98 million shares worth Rs 22.90 crore were traded.