Trimming initial losses, shares of Multi Commodity Exchange and Financial Technologies India Ltd on Friday settled as much as 4.4 per cent lower after the board of MCX asked promoter FTIL to reduce its stake to 2 per cent in accordance with the regulator’s order.
After plunging 8.8 per cent to Rs 431 on the BSE in intra-day trade, the MCX scrip finally ended at Rs 451.95, down 4.37 per cent. FTIL settled with a loss of 1.01 per cent at Rs 171.30.
Last week, the Forward Markets Commission had issued an order declaring FTIL and its chief Jignesh Shah unfit to run any exchange, including the MCX, following a Rs 5,600 crore payment crisis at its group company — National Spot Exchange Ltd (NSEL).
MCX also charged Mr. Shah with being the “highest beneficiary of the fraud perpetrated” at NSEL.
NSEL, promoted by FTIL, has been defaulting on payments to 13,000 investors. It was plunged into the payment crisis after halting trading in commodities from August 1 on a government directive.
The MCX board of directors at a meeting on Monday decided to advise FTIL to implement the FMC order by reducing its stake in the company to 2 per cent or below from 26 per cent within a period of one month.
