 "Financial Technologies hits 52-week low on NSEL merger report")
Financial Technologies India (FTIL) has tanked 13% to Rs 148, extending its previous day’s 20% fall on BSE, after the government on Tuesday proposed a merger of the National Spot Exchange (NSEL) with the company.
The ministry of corporate affairs issued a draft notification, which said merging the two companies would combine assets and capital of the two and could allow the "satisfactory settlement of rights and liabilities of stakeholders and creditors of NSEL".
If NSEL is merged with FTIL, all the liabilities of the bourse will get transferred to its promoter whose main business is providing trading technologies.
FTIL owns 99.99% of NSEL, on which trading was suspended after a Rs 5,600-crore payment crisis came to light in July 2013.
The stock opened at Rs 136, also its 52-week low on BSE. The counter has seen huge trading volumes with a combined 1.45 million shares changed hands in first 10 minutes of trade on BSE and NSE.
The ministry of corporate affairs issued a draft notification, which said merging the two companies would combine assets and capital of the two and could allow the "satisfactory settlement of rights and liabilities of stakeholders and creditors of NSEL".
If NSEL is merged with FTIL, all the liabilities of the bourse will get transferred to its promoter whose main business is providing trading technologies.
FTIL owns 99.99% of NSEL, on which trading was suspended after a Rs 5,600-crore payment crisis came to light in July 2013.
The stock opened at Rs 136, also its 52-week low on BSE. The counter has seen huge trading volumes with a combined 1.45 million shares changed hands in first 10 minutes of trade on BSE and NSE.