MCX, FTIL shares slump 7% on Jignesh Shah arrest

Shares of Multi Commodity Exchange of India and Financial Technologies today ended as much as 7 per cent lower after promoter Jignesh Shah and former MCX head Shreekant Javalgekar were arrested in connection with the Rs 5,600-crore National Spot Exchange (NSEL) scam case.
After plummeting 9.38 per cent to Rs 483.55 in intra-day trade, shares of MCX finally ended at Rs 496.35, down 6.99 per cent from its previous close on the BSE.
Shares of FTIL were down 5 per cent to Rs 276.70 --its lower circuit limit.
The market value of MCX slipped by Rs 189.7 crore to Rs 2,531.30 crore, while that of FTIL fell by Rs 67.01 crore to Rs 1,274.99 crore.

The arrests came seven months after an FIR was registered by the Economic Offences Wing (EoW) of Mumbai police against Shah (promoter-director of the NSEL) and others on charges of cheating, forgery, breach of trust and criminal conspiracy to make quick profit.
Former MCX head and CEO Joseph Massey is also an accused in the NSEL scam.
NSEL's payment troubles began after it was ordered by the government in July last year to suspend spot trade in most of its contracts due to suspected violations.
There were 24 members who defaulted on payments to about 13,000 investors.