Shares in FT recover despite SEBI saying company unfit to run exchange

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 Shares in FT recover despite SEBI saying company unfit to run exchange
Shares in Financial Technologies, which hit an intra day low of Rs 368, recovered to trade at Rs 378, despite capital market regulator saying the company was not fit to run an exchange.

SEBI has given the company 90 days to divest its stake in such exchanges.

SEBI also noted that the Forward Markets Commission (FMC) passed an order on December 17, 2013 against FTIL holding inter alia as under:

"In the public interest and in the interest of the Commodities Derivatives Market which is regulated under FCRA, 1952, the Commission holds that Financial Technologies (India) Ltd (FTIL) is not a ‘fit and proper person' to continue to be a shareholder of 2% or more of the paid-up equity capital of Multi Commodity Exchange of India Ltd. (MCX) as prescribed under the guidelines issued by the Government of India for capital structure of commodity exchanges post 5- years of operation. It is further ordered that neither FTIL, nor any company/entity controlled by it, either directly or indirectly, shall hold any shares in any association / Exchange recognised by the Government or registered by the FMC in excess of the threshold limit of the total paid-up equity capital of such Association / Exchange as prescribed under the commodity exchange guidelines and post 5-year guidelines".

Financial Technologies has a stake MCX Stock Exchange, MCX Stock Exchange Clearing Corporation Limited, Delhi Stock Exchange, Vadodara Stock Exchange and the National Stock Exchange of India.

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