Financial Technologies (India) spurts 20.21% to Rs 221 at 11:13 IST on BSE after the Securities and Exchange Board of India renewed the license of MCX Stock Exchange for a period of one year beginning 16 September 2013.
Meanwhile, the BSE Sensex was down 118.05 points, or 0.59%, to 19,879.40.
On BSE, 27.17 lakh shares were traded in the counter compared with average volume of 12.61 lakh shares in the past one quarter.
The stock hit a high of Rs 236.40 and a low of Rs 189.80 so far during the day. The stock hit a 52-week low of Rs 102.05 on 30 August 2013. The stock hit a 52-week high of Rs 1,223.80 on 13 November 2012.
The stock had underperformed the market over the past one month till 11 September 2013, rising 3.17% compared with the Sensex's 6.43% rise. The scrip had also underperformed the market in past one quarter, falling 77% as against Sensex's 4.46% decline.
The small-cap company has an equity capital of Rs 9.22 crore. Face value per share is Rs 2.
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In an order issued late on Wednesday, 11 September 2013, the capital markets regulator the Securities and Exchange Board of India (Sebi) granted a one-year renewal of recognition from 16 September 2013 to MCX Stock Exchange (MCX-SX), promoted by Financial Technologies (India) (FTIL). The recognition was due to expire on 15 September 2013.
Sebi asked the MCX-SX shareholders to reconstitute its board and rejig its top management if necessary to improve governance standards within the stock exchange.
MCX-SX has been asked to set up a committee comprising two public interest directors and three nominees from among its institutional investors within two days from 16 September 2013 to oversee the following functions: all financial transactions related to investment, lending, and borrowing of funds and related party transactions as defined in AS 18; appointment of key management personnel, all facility/infrastructure sharing arrangements and all major capital expenditure. The committee will also advise the board on all major policy matters and maintain a record of proceedings.
The Sebi release said that a similar committee will also be constituted by MCX-SX Clearing Corporation (MCX-SX-CCL), which is a subsidiary of MCX-SX, to oversee the clearing and settlement functions in addition to the functions listed above.
The order from Sebi comes after MCX-SX's affiliated commodity exchange, the National Stock Exchange of India (NSEL), abruptly suspended trading. NSEL has since struggled to square off outstanding contracts worth over Rs 5500 crore.
FTIL, which controls NSEL, holds a 26% stake in Multi Commodity Exchange of India. FTIL and Multi Commodity Exchange are the promoters of the MCX-SX stock exchange.
The regulator has asked MCX-SX's shareholders to report to Sebi its findings as well as remedial actions within 30 days from the approval.
FTIL's net profit rose 6.84% to Rs 81.21 crore on 15.44% growth in total income to Rs 169.54 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced after market hours on Tuesday, 30 July 2013.
FTIL's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 17% to Rs 120 crore in Q1 June 2013 over Q1 June 2012. The company's profit before tax (PBT) surged 32% year on year (YoY) to Rs 110 crore in Q1 June 2013.
FTIL is among the global leaders in offering technology IP (Intellectual Property) and domain expertise to create and trade on next generation financial markets, that are transparent, efficient and liquid, across all asset classes including - equities, commodities, currencies and bonds among others. The group operates one of the world's largest networks of nine exchanges connecting fast-growing economies of Africa, Middle East, India and South East Asia. The group also has five ecosystem ventures to address upstream and downstream opportunities around exchanges, including clearing, depository, information vending and payment gateway, among others.
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