Financial Technologies (India) slumped 12.65% to Rs 172.90 at 10:03 IST on BSE on reports the Government is likely to ban trading in e-series contracts on National Spot Exchange.
Meanwhile, the S&P BSE Sensex was down 183.22 points, or 0.96%, to 18,999.04.
On BSE, 14.49 lakh shares were traded in the counter as against an average daily volume of 3.55 lakh shares in the past one quarter.
The stock hit a high of Rs 178.20 and a low of Rs 148.50 so far during the day. The stock had hit a 52-week low of Rs 105.50 on 2 August 2013. The stock had hit a 52-week high of Rs 1223.80 on 13 November 2012.
The stock had underperformed the market over the past one month till 5 August 2013, sliding 73.85% compared with the Sensex's 1.61% fall. The scrip had also underperformed the market in past one quarter, sliding 75.83% as against Sensex's 2.01% fall.
The small-cap company has an equity capital of Rs 9.22 crore. Face value per share is Rs 2.
According to reports, the Consumer Affairs Ministry is likely to ban the trading in existing 'e-series' contract and fresh forward one day contracts on National Spot Exchange (NSEL), a move that could hit its business further.
NSEL offers e-series contracts in gold, silver, copper, zinc, lead, nickel and platinum. Under e-series contracts, retail investors can buy and sell commodities in demat form.
Financial Technologies (India) (FTIL) lost a staggering 64.59% to Rs 191.75 on Thursday, 1 August 2013, after NSEL on Wednesday, 31 July 2013, said it suspended trade in all contracts except 'e-series' following the Government's direction not to launch new contracts because of violation of some rules. NSEL is grappling with the problem of payment settlement after the suspension.
FTIL is one of the two promoters of the NSEL. FTIL shares crashed 72.07% in two session to Rs 151.25 on Friday, 2 August 2013, from Rs 541.55 on Wednesday, 31 July 2013.
In a clarification to the stock exchanges, Mr. Jignesh Shah, chairman & managing director of Financial Technologies (India) (FTIL) had on 1 August 2013 said that this action of NSEL does not entail any financial liability on FTIL and that the business of FTIL is as usual.
FTIL shares bounced back 30.88% to Rs 197.95 on Monday, 5 August 2013, on bargain hunting after NSEL proposed a staggered payment schedule to resolve the crisis.
NSEL on Sunday, 4 August 2013, proposed two options for settlement of trades on the exchange in the aftermath of NSEL's decision on 31 July 2013 to suspend trading in most one-day forward contracts and to defer the settlement of all pending contracts for 15 days.
NSEL said that there are eight members/processors, who are willing to pay as per the scheduled due date or even earlier. The total amount pertaining these 8 members is Rs 2181 crore. NSEL said that there are 13 members/processors, who have offered to pay 5% of their total dues every week, if this proposal is agreed upon by the exchange. Total amount pertaining to these 13 members is about Rs 3107 crore. There are 3 processors with whom negotiation is still going on, NSEL said. The amount pertaining to these parties comes to Rs 311 crore.
As per the second option for settlement of trades, NSEL said that the exchange is in possession of post dated cheques (PDC) from various processors amounting to Rs 4900 crore against their settlement obligation and balance parties have confirmed payment regularly. While PDCs are a commitment, the payout process may not roll out smoothly in a month's time, NSEL said. Hence, the market participants have proposed the first option as a safer alternative, NSEL said.
Meanwhile, shares of Multi Commodity Exchange of India (MCX), a commodities futures exchange promoted by FTIL, fell by the maximum permissible level of 10% to Rs 331.85 today, 6 August 2013. On Thursday, 1 August 2013, the stock fell by the maximum permissible level of 20% to Rs 512.05. MCX shares have lost 48.15% in four sessions from Rs 640 on Wednesday, 31 July 2013.
In response to the media queries regarding impact of NSEL circular, if any, on MCX, Mr. Shreekant Javalgekar, MD & CEO, MCX clarified during trading hours on Thursday that there will not be any impact of NSEL's circular on the operations and financials of MCX.
FTIL's net profit rose 6.84% to Rs 81.20 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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