FTIL, MCX fall up to 3.5 pc on FMC ruling

Tags: Companies
Shares of Financial Technologies India Ltd and Multi Commodity Exchange of India today fell up to 3.5 per cent following an order by commodity market regulator FMC which said Jignesh Shah and his firm FTIL are not 'fit and proper' to run any exchange in the country.

FTIL shares ended 3.45 per cent lower at Rs 161.05 on the BSE stock exchange.

Similarly, MCX was down 1.48 per cent to Rs 415.10.

Shah founded Multi-Commodity Exchange (MCX) in November 2003 and then went on to set up a stock exchange this year. He is currently the Chairman of Financial Technologies India Ltd (FTIL) which owns and runs National Spot Exchange Ltd (NSEL) where a Rs 5,500 crore payment crisis is being probed by multiple agencies.

In an 80-page order, the Forward Markets Commission (FMC), which went into the running of NSEL following payment defaults, held that FTIL is not a 'fit and proper person' to hold anything more than 2 per cent shareholding in the MCX.

FTIL currently has 26 per cent stake in MCX, the country's largest commodity exchange and will need to cut its stake following the FMC order.

Shah on October 9 quit as Vice-Chairman and Shareholder Director of MCX-SX, the third major stock exchange in the country. Few weeks later, he also resigned as Vice Chairman of MCX.

Noting that Shah was "practically the highest beneficiary of the fraud perpetrated at the NSEL Exchange", the FMC ordered that "Jignesh P. Shah is not a 'fit and proper' person to hold any position in the management and the Board of any Exchange recognised or registered by the Government of India/Forward Markets Commission under FCRA, 1952".

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The economic survey falls in step with the BJP’s election manifesto

    It’s always tough to find something wrong with the annual economic survey as it only articulates the government’s desire to set its house in order

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Why higher education needs innovation

India is such a great country that it creates complexity ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture