Financial Technologies shares are under pressure, falling more than 10 percent intraday Friday after rising 50 percent in previous two sessions.
Last evening after market hours, the Enforcement Directorate (ED) submitted its report to the finance ministry on the National Spot Exchange (NSEL) crisis.
In its report, the ED suggested financial irregularities in the form of Foreign Exchange Management Act (FEMA) violations and more violations under Preventive Money Laundering Act (PMLA), indicating siphoning of money took place.
Meanwhile, the Economic Offences Wing (EOW) of the Mumbai police has also confirmed that NSEL cheated investors. The government's working group that was probing the NSEL mess has found instance of money laundering.
The EOW has said that it can register a case of fraud against the company while the FMC can also get a stronger case to revoke the fit and proper clause for NSEL promoters.
On September 18, the special group headed by DEA secretary Arvind Mayaram will meet and review this report but finance ministry sources have said that if there are violations of NSEL associates like MCX-SX, then the Securities and Exchange Board of India (Sebi) will have to be involved.
NSEL, promoted by Jignesh Shah-headed Financial Technologies India Ltd suspended trading on July 31, raising concerns about possible default of Rs 5,600 crore.
At 14:51 hours IST, the stock lost 5.8 percent to Rs 204.80 on the Bombay Stock Exchange.
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