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Shares of Financial Technologies (India) are trading nearly 5% higher at Rs 228 on the BSE extending its friday's rally of 7% after the company announced the detailed cost structure of the agreement with MCX.
FTIL signed a 10-year long-term technology contract with the commodity exchange MCX.
FTIL signed a 10-year long-term technology contract with the commodity exchange MCX.
FTIL & MCX have executed a master amendment to principal agreements for providing software support & managed services on mutually agreed terms & conditions until the year 2022 and further renewal as may be mutually agreed between the parties.
The inter cilia commercial terms & conditions of the supplementary agreement are as follows:
A) Fixed Chagres of Rs 5 crore per month including managed services payable in advance on semiannual basis
B) variable Charges of 10.3% of gross transaction fees, by whatever name called to be paid in 30 days
Due to this Supplementary Agreement, and based on the current volume of MCX and assuming MCX daily volume remain same, the negative impact on the total income of the Company would be around Rs 9 crores for the period 2014-15.
The stock opened at Rs 220, touched a high of Rs 235 and a low of Rs 220 on the BSE. A total of 80,307 shares have been exchanged on the BSE so far.
