FTIL 'arrested' on lower circuit

Not surprisingly, the top losers on the BSE today morning are currently Financial Technologies and MCX. Financial Tech is the biggest loser, currently down 5% at Rs.276.70, its lower circuit. It hit the circuit the moment it opened for trading today morning. Interestingly, the stock had yesterday hit the upper circuit at Rs.314.70. And then comes MCX, which is down almost 4% at Rs.513.90 but this is after having hit an intra day low at Rs.483.55.

Both the stocks are down as the Mumbai Police has arrested the founder of the group, Jignesh Shah and his ‘right hand man’, Shreekant Javalgekar. They were arrested for not cooperating with the police as they have been investigating the massive Rs.5600 crore scam at National Spot Exchange, which is a subsidiary of Financial Technologies.

This puts the foreign investment in both the companies in a jeopardy as this arrest of Shah means that the entire process of ousting him as the owner and then selling his stake to potential bidders. As our Editor, Mr.SP Tulsian says, “ this arrest means the stake sale in MCX, held by Financial Tech will get expedited, which will be seen positive for MCX, as many potential buyers are lined up to buy it. But this will be negative for Financial Tech.”