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BSE has sought clarification from Financial Technologies (FTIL) on the sale of warrants in the MCX-SX stake-sale to 13 entities, including ace investor Rakesh Jhunjhunwala, conducted last month. The exchange has raised questions over the viability of warrant sales after they had been treated as extinguished by the company earlier this year in August.
As per the MCX-SX stake-sale, FTIL had entered into a 'share and warrant purchase' agreement with the 13 entities in a deal amounting to Rs 88 crore. However, prior to that, the FTIL Board had decided to treat the warrants as being extinguished and to transfer an amount of Rs 56 crore as non-refundable interest free deposit against warrants to the capital reserves, in a notice posted on the website on August 25, 2014.
The BSE has now asked the company to explain the sale of these 'extinguished warrants' and on further updates on the transfer of the amount to the capital reserves.
FTIL did not immediately illicit a response.
