Financial Technologies (India) slumped 21.41% to Rs 150.70 at 10:32 IST on BSE, extending Thursday's 64.59% crash triggered by the company's unit National Spot Exchange suspending trading of all one-day forward contracts.
Meanwhile, the S&P BSE Sensex was down 13.95 points, or 0.07%, to 19,303.24.
On BSE, 28.88 lakh shares were traded in the counter as against an average daily volume of 1.54 lakh shares in the past one quarter.
The stock hit a low of Rs 105.50 so far during the day, which is also a 52-week low four the counter. The stock hit a high of Rs 178.85 so far during the day. 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 1 August 2013, sliding 75.74% compared with the Sensex's 1.33% fall. The scrip had also underperformed the market in past one quarter, falling 76.30% as against Sensex's 0.96% fall.
The small-cap company has an equity capital of Rs 9.22 crore. Face value per share is Rs 2.
Financial Technologies (India) (FTIL) lost a staggering 64.59% to Rs 191.75 on Thursday, 1 August 2013, after the National Spot Exchange (NSEL), a commodities exchange, on Wednesday, 31 July 2013, said it has suspended trading of contracts, other than e-Series contracts till further notice. FTIL is one of the two promoters of the National Spot Exchange. FTIL shares have lost 72.17% in two session from Rs 541.55 on Wednesday, 31 July 2013.
In a clarification to the stock exchanges, Mr. Jignesh Shah, Chairman & Managing Director of FTIL said during trading hours on Thursday that this action of NSEL does not entail any financial liability on FTIL and that the business of FTIL is as usual. "We are confident that NSEL will resolve the situation within the contours of its Bye-laws and Rules," Shah said.
NSEL said it has also decided to merge the delivery and settlement of all pending contracts and deferred the same for a period of 15 days. Consequently, the positions outstanding in the contracts will be settled by way of delivery and payment after expiry of 15 days. The exchange will announce a revised settlement calendar and contracts due for settlement after this 15 days period, it said.
NSEL said that following the directions issued by the Department of Consumer Affairs, Government of India on 12 July 2013, the exchange had given an undertaking to the Government and simultaneously introduced T+10 contracts with Trade for Trade settlements. This was done with a view to ensure orderly participation without creating any negative sentiments in the market, it said. Such structural change has disrupted the market equilibrium as volumes on the exchange have gone down significantly. It created conflicting views in the minds of large number of members that there are certain regulatory issues pertaining to the contracts running on the exchange in view of the government's direction dated 12 July 2013, which has been widely reported in media. This abrupt action has created uncertainty and doubt about continuity of trading on the exchange and hence most of the participants started withdrawing from the market, the National Spot Exchange said. While the exchange has run successfully without any disruption since last five years, such structural change has created market disequilibrium, leading to this scenario, it said.
The exchange will ensure that the process of settlement takes place in orderly manner and all participants get their rightful dues in accordance with Rules and Bylaws of the Exchange keeping in view the interest of the participants, it said.
Meanwhile, shares of Multi Commodity Exchange of India (MCX), a commodity futures exchange promoted by FTIL, fell by the maximum permissible level of 20% to Rs 409.65. On Thursday, 1 August 2013, the stock fell by the maximum permissible level of 20% to Rs 512.05. MCX shares have lost 35.99% in two session from Rs 640 on Wednesday, 31 July 2013.
In response to the media queries regarding impact of National Spot Exchange (NSEL) circular, if any, on MCX, Mr. Shreekant Javalgekar, MD & CEO, MCX has clarified during trading hours on Thursday that there will not be any impact of NSEL's circular on the operations and financials of MCX.
Shares of FTIL witnessed a steep slide recently. The slide gained further momentum with the stock tumbling by 9% to settle at Rs 566.85 on 26 July 2013. The stock rose 1.47% to Rs 575.20 on 29 July 2013. Thereafter, the scrip once again resumed downtrend, falling 73.80% in four trading days from a recent high of Rs 575.20 on 29 July 2013.
The company after trading hours on 26 July 2013, said bear cartels are working against the interest of the company by spreading a number of malicious rumours and warned that the company reserves its rights to take necessary legal action, including complaining to stock market regulator Securities & Exchange Board of India (Sebi) and all other relevant authorities to investigate and take necessary action into this malicious campaign against the company.
The series of rumours that are spread in the market have a pattern more particularly to spread on Friday and such rumours are spread by some unscrupulous elements with a design to depress the share price of FTIL and damage its reputation, the company said at that time in its clarification to the stock exchanges.
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, payment gateway, among others.
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