Jignesh Shah selling FT stake, allege NSEL investors

The National Spot Exchange Ltd (NSEL) investors' forum on Friday alleged Financial Technologies founder Jignesh Shah was in advanced discussions to sell a substantial part of his holding in Financial Technologies, the exchange's promoter.

A Financial Technologies spokesperson denied any such move.

Arun Dalmiya, secretary of the investors' forum, wrote to Shah, saying the association wouldn't allow any move to sell stake. The forum said it wouldn't allow NSEL promoters to fritter away their assets, as these could be used to pay investors. "We strongly apprehend the sale of Financial Technologies assets is not a genuine transaction," Dalmiya said.

Jignesh Shah holds 48 per cent stake in Financial Technologies.

The NSEL investors' forum has held Shah responsible for the NSEL crisis. The letter stated if investors weren't paid or if Financial Technologies assets were sold, the forum would take legal action.

Financial Technologies companies are facing regulatory issues after NSEL, one of the group's exchanges, defaulted on payments worth Rs 5,500 crore to investors.