63moons management optimistic firm will overcome all legal battle over NSEL

Company gearing up for the future with products for 11-12 verticals

63moons Technologies, formerly known as Financial Technologies India Ltd (FTIL), is optimistic that it will come out from all the legal hurdles that it is facing currently. Further, the company is also creating products in at least 11-12 verticals for its future prospects.    

63moons is fighting various legal battles in a matter related to an alleged payment scam to the tune of around Rs 56 billion by its subsidiary, National Spot Exchange Ltd (NSEL).   

Another development, according to company sources, is that the Bombay High Court-appointed committee has received claims worth Rs 6.50 billion, while the assets of the company attached by the authorities were around Rs 29 billion.  

Addressing shareholders at Chennai on Thursday, Venkat Chary, chairman and independent non-executive director, 63moons Technologies limited, said, "It has been over five years now, but no court in India held any one contract illegal and, till now, no single adverse ruling (has come) from any court. 63moons has not received even one paisa due to the alleged scam. Both law and facts are on our side and we will come out victorious."

"It is NSEL's brokers scam, not NSEL scam," said Chary, who quoted a Bombay High Court judge's words. 

The company has faced various unprecedented actions, including being forcefully made to exit the exchange space by being declared "not a fit and proper", being ordered to merge with NSEL and the subsequent move to change its management. 

Chary informed the shareholders the "not a fit and proper" order is not valid now, since the order was only for three years. The order was passed almost four years back. 

However, the company continues to fight against the order to prove that it was not a right decision. The company claimed the move to change the management was done without running any evidence-led trial. 

S Rajendran, managing director & CEO, 63moons Technologies limited, informed the shareholders that the company's internal legal and external teams are convinced that it is worth fighting as the facts and figures are right and that he was confident of coming out from all the legal issues.

On whether the Serious Fraud Investigation Office has asked the company to delist, the management said that they did not get any such communications. 

Meanwhile, Chary said that the company was gearing up for the future with new IT-driven innovations, client servicing and new product development that would lead to growth. 

The mainstay of 63moons remains its balance sheet, infrastructure and human capital. It is a virtually zero-debt company, which is profitable and has received investments worth around Rs 22 billion. 

Given an opportunity, 63moons is competent enough to create a business model by becoming a technology innovation partner to enable 108 new digital disrupters in 12 verticals across all sectors, he said. 

Today, revenue and profit are being generated by ODIN, the company's flagship brokerage trading suite of solutions, return on investments. The company's exchange technology business continues to support India's largest commodity exchange, MCX, and equity/derivatives/currency derivatives/debt exchange, MSEI.