 "Financial Technologies tanks 20% on government order to merge with NSEL")
Financial Technologies (India) has hit the lower circuit of 20% at Rs 170 on National Stock Exchange (NSE), after the company said it has received a draft order of amalgamation of National Spot Exchange Limited (NSEL) with the comapny.
“The company has received a communication from Ministry of Corporate Affairs on the draft order of amalgamation of National Spot Exchange Limited (NSEL) with Financial Technologies (India) under Section 396(1) of the Companies Act, 1956,” Financial Technologies said in a statement.
The company is taking appropriate steps in the matter in consultation with the legal counsel of the company, it added.
The Forward Markets Commission (FMC) had proposed the merger of these two entities under the ‘public interest’ provision in the Companies Act, to enable an early settlement to about 13,000 investors affected by the Rs 5,600-crore payment default.
At 1420 hours, a combined 1.5 million shares changed hands and there are pending sell orders for 374,310 shares on NSE and BSE.
“The company has received a communication from Ministry of Corporate Affairs on the draft order of amalgamation of National Spot Exchange Limited (NSEL) with Financial Technologies (India) under Section 396(1) of the Companies Act, 1956,” Financial Technologies said in a statement.
The company is taking appropriate steps in the matter in consultation with the legal counsel of the company, it added.
The Forward Markets Commission (FMC) had proposed the merger of these two entities under the ‘public interest’ provision in the Companies Act, to enable an early settlement to about 13,000 investors affected by the Rs 5,600-crore payment default.
At 1420 hours, a combined 1.5 million shares changed hands and there are pending sell orders for 374,310 shares on NSE and BSE.