Financial Technologies up 45% on NSEL settlement assurance
Financial Technologies (FTIL) shares plunged 72 percent in previous two sessions to hit an all-time low of Rs 105.50, after the National Spot Exchange (NSEL) - promoted by FTIL - suspended trade in all one-day forward contracts except e-series products.
August 05, 2013 / 11:18 IST
Moneycontrol Bureau
Financial Technologies (FTIL) shares continued to remain in focus with a surge of 45 percent in morning trade after hitting a low of 20 percent in early trade Monday.The stock plunged 72 percent in previous two sessions to hit an all-time low of Rs 105.50, after the National Spot Exchange (NSEL) - promoted by FTIL - suspended trade in all one-day forward contracts except e-series products.The stock is reacting to NSEL's proposal for settlement cycle involving Rs 5,600 crore. NSEL said that Rs 2,181 crore will be paid by members and the remaining Rs 3,107 crore will be settled on weekly basis, but this was rejected by Forward Markets Commission (FMC).Also Read - Sebi seeks details from brokers about exposure to NSELAt 10:57 hours IST, the stock was quoting at Rs 203.75, up Rs 56.25, or 38.14 percent on the National Stock Exchange.SP Tulsian of sptulsian.com feels this is a clear-cut case of the wrong instruments having launched by the NSEL which is owned 99 percent plus by Financial Technologies, so he is not hopeful. "Let me be very clear that we are going to see some payment. Whether that payment will be Rs 2,000 crore, Rs 3,000 crore, I will not be able to say that," he adds."I am keeping my negative stance on Financial Technologies and that is going to have very serious implications and repercussions on the financials and working of the company," Tulsian said. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
