Financial Technologies (India) is trading lower by 4% to Rs 707, extending its previous day’s 4% fall, after the company said the consumer affairs department has sought an undertaking from its subsidiary National Spot Exchange Limited (NSEL) that no further contracts will be launched and all existing contracts should be settled on their due dates.
According to media reports, the Forward Markets Commission (FMC) had found breaches of the conditions under which NSEL was granted exemptions to allow carry forward contracts for a day. Spot exchanges are as a rule allowed to trade on spot bases only but to offer flexibility to farmers, such a carry forward facility was allowed.
However, the company said it is seeking necessary clarification in this regard since Spot Exchanges do not have any such concept of contracts with “Due Date” (unlike future contacts) traded on its platform.
The company also said that it will comply with all lawful directions issued by the concerned authorities in this regard.
The stock opened at Rs 720 and hit a low of Rs 699 on BSE. A combined 499,345 shares have changed hands on the counter so far on BSE and NSE.
According to media reports, the Forward Markets Commission (FMC) had found breaches of the conditions under which NSEL was granted exemptions to allow carry forward contracts for a day. Spot exchanges are as a rule allowed to trade on spot bases only but to offer flexibility to farmers, such a carry forward facility was allowed.
However, the company said it is seeking necessary clarification in this regard since Spot Exchanges do not have any such concept of contracts with “Due Date” (unlike future contacts) traded on its platform.
The company also said that it will comply with all lawful directions issued by the concerned authorities in this regard.
The stock opened at Rs 720 and hit a low of Rs 699 on BSE. A combined 499,345 shares have changed hands on the counter so far on BSE and NSE.