Financial Technologies (India) tumbled 56.42% to Rs 236 at 11:51 IST on BSE after its unlisted subsidiary National Spot Exchange suspended trading of all one-day forward contracts following the recent regulatory changes.
The announcement was made by FTIL during market hours today, 1 August 2013.
Meanwhile, the S&P BSE Sensex was up 37.22 points or 0.19% at 19,382.92
On BSE, 35.94 lakh shares were traded in the counter as against average daily volume of 61,588 shares in the past one quarter.
The stock slumped 66.39% at the day's low of Rs 182 so far during the day, which is also 52-week low for the counter. The stock hit day's high of Rs 487.40 so far during the day. The stock had 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 31 July 2013, falling 30.39% compared with the Sensex's 0.26% fall. The scrip had also underperformed the market in past one quarter, sliding 33.07% as against Sensex's 0.81% decline.
The small-cap company has equity capital of Rs 9.22 crore. Face value per share is Rs 2.
Shares of Financial Technologies (India) (FTIL) collapsed after its unlisted subsidiary National Spot Exchange (NSEL) announced trading suspension of all one-day forward contracts till further notice. However trading, settlement and physical delivery of e-series contracts like e-gold, e-silver, etc. and other initiatives of the exchange such as e-auction, e-procurement, MSP operations on behalf of the government agencies (NAFED and SFAC), etc. will continue as usual.
NSEL said that it will 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. Exchange shall announce a revised settlement calendar and contracts due for settlement after this 15 days period. NSEL shall announce a revised settlement calendar and contracts due for settlement after this 15 days period, NSEL said.
Pursuant to the directions issued by the Department of Consumer Affairs, Government of India vide letter dated 12 July 2013, NSEL had given an undertaking to the Government and simultaneously introduced T+10 with Trade to Trade settlement. This was done with a view to ensure orderly participation without creating any negative sentiments in the market.
NSEL said that 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 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. While the exchange has run successfully without any disruption since last five years, such structural change has created market disequilibrium, leading to this scenario.
NSEL said that 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.
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 56.42% in three 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.
Commenting on the company's Q1 performance, Dewang Neralla, Whole Time Director, FTIL said, "This has been a steady for Financial Technologies. We booked total income of Rs 169 crore and PBT of Rs 110 crore for Q1 June 2013, an increase of 31% over Q1 June 2012. IEX leads the electricity markets with dominant share of 97% in Day ahead trading for quarter ended 30 June 2013. IEX recorded an average daily volume of 78,347 MWh in Day ahead, trading for quarter ended 30 June 2013, a growth of 69% YoY. During this quarter, our international exchanges stepped up to next level; BFX recorded an average daily turnover of $175 million for the quarter ended 30 June 2013, a growth of 95% YoY. DGCX recorded an average daily turnover of $2.2 billion for quarter ended 30 June 2013, an increase of 60% over same quarter last year".
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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