FTIL proposes to loan Rs 50 cr to NSEL

A payment crisis of Rs 5,600 cr unfolded on NSEL trading platform two years ago

Financial Technologies has proposed to provide additional financial assistance of Rs 50 crore to its crisis ridden subsidiary National Spot Exchange Limited. The FTIL informed this in its filing on the Bombay Stock Exchange.

The assistance can be in the nature of loan or equity infusion. A payment crisis of Rs 5,600 crore unfolded on NSEL trading platform two years ago. FTIL said, “NSEL has requested for financial support for its ongoing activities like recovering money from defaulting members, defending various legal cases and for working capital.”

FTIL has placed this proposal apart from eight other proposals for approval before shareholders through postal ballot. It may be recalled that after NSEL crisis FTIL exited from the exchange business, which was its main business apart from technology-related business.

Now the company is implementing the third phase of its business strategy, which is investing in companies in 10 identified sectors and develop technologies for the same. FTIL stock closed 2.25% higher at Rs 152 today on BSE.