FTIL, MCX shares fall as investors await NSEL settlement plan
1 min read 12 Aug 2013, 10:16 AM ISTShares of FTIL end 4.46% lower, after falling as much as 7.4% in early trade, while those of MCX drop 5% to hit the lower circuit
Premium(Ramesh Pathania/Mint)
Mumbai: Shares of Financial Technologies (India) Ltd (FTIL) declined again on Monday, falling as much as 7.4%, as investors anxiously awaited the settlement plan by its embattled unit National Spot Exchange Ltd (NSEL) expected by Wednesday.
Shares of group company Multi Commodity Exchange of India Ltd (MCX) continued their downward journey and hit the lower circuit after falling nearly 5% to a new low of ₹ 280.60.
A PTI report on Sunday said NSEL has opened an escrow account as directed by the government to ensure payouts on priority to about 8,000 small investors stuck after the exchange halted trading from 1 August.
The government has asked Jignesh Shah, head of FTIL, to take complete responsibility for ensuring the settlement of about ₹ 5,600 crore due to investors, a PTI report on Friday had said.
“We are watching the situation. The FMC (Forward Markets Commission) has not yet submitted the report. We have to know where the stocks are. Primarily, we are putting the responsibility of settlement on Jignesh Shah," PTI had quoted consumer affairs minister K.V. Thomas as saying. “He (Shah) has to be responsible," Thomas said, adding that this was communicated to Shah at a recent meeting.
NSEL has set up a four-member panel to monitor the process, and the government has empowered FMC to oversee the settlement.
Shares of FTIL ended 4.46% lower at ₹ 170.25 apiece on BSE on Monday, while the benchmark 30-share Sensex gained 0.84% to 18,946.98 points.
