Financial Technologies (India) and Multi Commodity Exchange of India rose by 3.49% to 5.92% on BSE after Financial Technologies (India) pared stake in Multi Commodity Exchange in the open market.
Multi Commodity Exchange of India (MCX) jumped 5.92% to Rs 794.10 after hitting a 52-week high of Rs 802.50 in intraday trade.
Financial Technologies (India) (FTIL) rose 3.49% to Rs 277.40.
The S&P BSE Sensex rose 11.44 points or 0.04% at 25,561.16.
Shares of FTIL had underperformed the market over the past one month till 16 July 2014, rising 1.30% compared with 1.43% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 25.38% as against Sensex's 14.69% rise.
Shares of MCX had outperformed the market over the past one month till 16 July 2014, rising 25.34% compared with 1.43% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 22.93% as against Sensex's 14.69% rise.
FTIL after trading hours on Wednesday, 16 July 2014, said that the company has sold an aggregate of 20.40 lakh equity shares of MCX on the stock exchanges.
On Wednesday, FTIL sold 8.14 lakh MCX equity shares at Rs 752.87 each on BSE. It sold 12.26 lakh MCX shares at Rs 752.79 each on NSE.
After the latest sale, FTIL's holding in MCX has come down to 20%, which is under lock-in till 7 March 2015.
On 7 May 2014, the Mumbai police's Economic Offences Wing (EOW) arrested Jignesh Shah, chairman and group chief executive of FTIL, in connection with the Rs 5574.34 crore fraud at National Spot Exchange (NSEL). FTIL owns 99.9% of NSEL. MCX is also an affiliate of FTIL.
The crisis at NSEL came to light on 31 July 2013 when the exchange suspended trading in all but its e-series contracts. These, too, were suspended a week later. The suspension may have been prompted by an instruction from the ministry of consumer affairs to the exchange asking it not to offer futures contracts. A spot exchange is not supposed to do so, but NSEL was doing that. NSEL tried to implement the change, but because its appeal was to investors and members who were not interested in spot trades, it eventually had to suspend all trading.
Subsequent investigations have highlighted the possibility of fraud and, according to the Forward Markets Commission (FMC), the involvement of promoters. On 14 August 2013, NSEL proposed a payout plan, but it has been unable to stick to the schedule and has not made a single successful payout ever since.
FMC in its order dated 17 December 2013 said that FTIL, the promoter and anchor shareholder holding 26% of the paid-up capital of the commodity exchange MCX, is not 'fit and proper person' to continue to be a shareholder of 2% or more of the paid-up equity capital of MCX as prescribed under the guidelines issued by the Government of India (GoI) for capital structure of commodity exchanges post 5-years of operation.
Powered by Capital Market - Live News
