Fin Tech slips 5% on CBI's preliminary enquiry against co

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Shares of Financial Technologies (FTIL) fell as much as 5 percent in early trade Friday as the company comes under CBI scanner. CNBC-TV18 reported quoting sources that Central Bureau of Investigation (CBI) has registered a preliminary enquiry against former SEBI chairman, Jignesh Shah-led FTIL and MCX, among others.

It is learnt that the preliminary enquiry is related to alleged irregularities in giving recognition to the MCX-SX by the SEBI in 2008 and renewing the recognition in 2009 & 2010.

CBI will make preliminary enquiry against CB Bhave, the former chairman of Securities and Exchange Board of India (at the time of granting permission to MCX-SX) and former MCX board member KM Abraham.

MCX Stock Exchange (MCX-SX), which started functioning in 2013 after SEBI notified a recognised stock exchange in December 2012, was set up by FTIL.

Promoter Jignesh Shah and promoter group hold 45.63 percent stake in FTIL that holds 26 percent stake in Multi-Commodity Exchange of India (MCX).

MCX and FTIL have 37.98 percent and 33.86 percent shareholding in MCX-SX while rest of the stake is held by public sector and private sector banks along with financial firms as on December 2013.

While addressing a press conference today newly-appointed MCX-SX CEO and MD Saurabh Sarkar said FTIL and MCX have been shifted from the category of promoter shareholder to public shareholder. "The exchange has successfully ring-fenced itself from the crisis and is run by a professional management team," he added.

He also said that the rights issue is on track. “It would be speculative to pre-empt resignation of all public interest directors and we would request to refrain from rumors and await the announcement post the board meeting. As in the case of other companies, new members would be nominated by shareholders or independent directors would be appointed by the regulator if the need arises,” the company said in a statement.

Meanwhile, CBI also carried out searches at offices of National Spot Exchange.

CNBC-TV18’s sources said that the board members of the exchange feel that CBI enquiry would jeopardise the prospects of MCX-SX and make it difficult to get any strategic investors. The original promoters of MCX-SX have been issued show-cause notices by regulator SEBI after another regulator FMC ruled they were not "fit and proper" to run any exchange in the wake of NSEL fallout.

The NSEL, promoted by FTIL, has defaulted payments worth Rs 5,600 crore.

However, FTIL shares were in demand as source-based reports suggested that some IT companies are interested in picking up stake in the company. The stock more than doubled in 2014.

After the fallout of the NSEL crisis and the FMC’s “fit and proper” order prompting a likely stake sale in MCX, Jignesh Shah began a restructuring exercise featuring a hunt for a strategic partner for FTIL, among other things.

Jignesh Shah on Wednesday told CNBC TV18 that so far big ticket technology players such as Infosys, Cognizant, L&T Infotech and Reuters have expressed interest.

Jignesh also disclosed that any realistic strategic partner would seek a stake of no less than 26 percent in FTIL. While admitting to not have kept a floor for how much stake he would be prepared to divest, he expressed comfort with a 26 percent stake sale.

Jignesh Shah conceded that he would be open to considering a stake sale at a discount to market prices.

The board of directors of FTIL on March 7 appointed JM Financial Institutional Securities as financial advisor for divestment of stake held in MCX.

At 11:17 hours IST, the stock fell 3.36 percent to Rs 365.30 on the Bombay Stock Exchange.