FTIL flays complaint based on PwC report

Questioning the legitimacy of Pricewaterhouse Coopers (PwC) audit report on the Multi Commodities Exchange of India (MCX), Financial Technologies (India) Ltd on Sunday termed a complaint filed against it on the reports' findings "baseless and highly motivated".

The complaint "has been filed with the mala fide intent to put pressure on NSEL (National Spot Exchange Ltd) and (parent company) FTIL in a bid to extort the monies allegedly lost by him (complainant Ketan Shah) while trading in commodities on NSEL's exchange platform through his broker under client-broker agreement," FTIL said in a statement.

It said Shah had earlier attempted to file the same complaint with the MIDC (Andheri) police station, which was turned down by police on the ground that similar complaints on the PwC report filed by MCX were probed and found to be without any substance.

The company said it has learnt from media reports that the metropolitan magistrate's court in Andheri has, by an ex-parte order, "directed registration of an FIR inter alia against FTIL".

"FTIL has not yet received the copy of the FIR or Ketan Shah's complaint. As and when the same is received, FTIL shall extend full support and cooperation in the investigation and firmly believes that the truth of the matter must come out," it said.

Industry chamber Assocham said earlier this month that it has written to Finance Minister Arun Jaitley to reconsider the draft merger order of NSEL with its parent firm in the larger interests of domestic trade and industry.

The controversy took a new turn on March 31 with the FTIL management proposing a settlement with traders who lost their money while dealing at the commodity bourse.