63 Moons at 5% UC

63 Moons Technologies is up in the green today; the stock, which had closed yesterday at Rs.723.35, opened slightly higher today at Rs.725 and soon hit the 5% UC of the day at Rs.759.50 where it now remains frozen. The stocks high and low stands at Rs.1079.85 and Rs.313.90 respectively.

The stock hit the UC after it announced that it has reached a settlement agreement with investors of the National Spot Exchange (NSEL) in the 2013 NSEL payments crisis case.

The company will pay Rs 1,950 crore as a one-time settlement to resolve the matter in a complete and final settlement with the investors. In exchange, the investors will transfer their claims against defaulters and third parties to 63 Moons.

Background to the scam:

• 63 Moons Technologies Ltd., formerly Financial Technologies India Ltd. (FTIL), was a leading provider of financial market infrastructure and owned multiple exchanges, including NSEL, MCX (Multi Commodity Exchange), and IEX (Indian Energy Exchange).
• NSEL was meant to facilitate spot trading of commodities, but it illegally allowed paired contracts, which led to speculative trading instead of real deliveries.
• This loophole eventually resulted in a massive Rs.5,600 crore default in 2013 when borrowers failed to pay back investors.
• To distance itself from the scandal, it renamed itself as 63 Moons – 63 moons of Jupiter planet.
• The company shifted focus from exchange operations to financial software and technology services.