Financial Tech at new low

Financial Technologies (India) is currently the top loser on the BSE, down by a whopping 33% at Rs.365, hitting a new 52-week low. Volumes have risen over 4 times. The lower circuit limit is at Rs.595.70.

The stock has hit rock bottom National Spot Exchange (NSEL) suspended trading of all contracts, other than e-Series and deferred the settlement till further notice. This has sparked fears of a cash crunch and default of payment in this Financial Tech promoted commodity bourse – MCX-SX, which is the second top loser on the BSE. NSEL has also decided to merge the delivery and settlement of all pending contracts and deferred the same for a period of 15 days. Consequently, the positions outstanding in the contracts will be settled by way of delivery and payment after expiry of 15 days.

If one may recollect, two weeks ago, NSEL asked the company to not launch contracts for any new commodities till a new regulatory framework was in place as it had alleged that the company had violated some rules while offering commodity contracts. Post this, Financial Tech had given an undertaking to the Govt that existing contracts will be settled on the due date and no new contracts will be launched.