 "EOW search at Shah's house due to NSEL ties, says FTIL")
Financial Technologies (India) Ltd (FTIL) on Monday clarified to the exchanges that the search operations conducted by the economic offences wing (EOW) of the Mumbai Police at the residence of Jignesh P Shah, FTIL’s chairman and managing director, on September 30 might have been because he is also a director on the board of National Sport Exchange Ltd (NSEL).
In another announcement, FT said it had received a show-cause notice from the Forward Markets Commission (FMC) on the status of the company as ‘Fit and Proper Person’ as a shareholder in MCX and it would reply to the notice in due course.
On Monday, FTIL shares ended 5.3 per cent higher at Rs 167.6 on the BSE.
In another announcement, FT said it had received a show-cause notice from the Forward Markets Commission (FMC) on the status of the company as ‘Fit and Proper Person’ as a shareholder in MCX and it would reply to the notice in due course.
On Monday, FTIL shares ended 5.3 per cent higher at Rs 167.6 on the BSE.
In response to an exchange querry about the news on the search operations, the company said, "It appears to us that EOW had conducted search operations on 30.09.2013 at the residence of the Directors of NSEL including at the residence of Jignesh P Shah, chairman & managing director, FTIL, may be due to he also being a Director on the Board of NSEL."
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Today, it also said that the Company has received a Show Cause Notice on October 05, 2013, from FMC on the status of the Company as "Fit and Proper Person" as a Shareholder in MCX. "The Company will reply to the show cause notice suitably in due course of time," it added.
FTIL has been related with a crisis emerged in its subsidiary, NSEL. According to earlier reports, NSEL has been facing a payment crisis from July, when it was not able to make payouts to investors. The crisis grew to a payment default of Rs 5,500 crore to investors.