Following the arrest of Jignesh Shah in the Rs5,600 crore NSEL scam, shares of MCX tumbled 9.38% to Rs483.55 while FTIL fell 5% to Rs276.70 in early trade on Thursday
Shares of Multi Commodities Exchange of India Ltd (MCX) and Financial Technologies (India) Ltd (FTIL) slumped as much as 9.4% in the morning trade Thursday after the company promoter Jignesh Shah and former MCX head Shreekant Javalgekar were arrested in connection with the Rs5,600-crore National Spot Exchange (NSEL) case.
Reacting to this, shares of both FTIL and MCX opened the day on a lower note. In the early trade, MCX tumbled 9.38% to Rs483.55 while FTIL fell 5% to Rs276.70 – its lower trading permissible limit for the day.
“Financial Technologies chief Jignesh Shah and former managing director and chief executive of MCX Shreekant Javalgekar were arrested in the NSEL case. Both are also members of the board of directors of NSEL and members of the spot exchange’s audit committee,” Rajvardhan Sinha, chief of the Economic Offences Wing of Mumbai Police, had said Wednesday evening.
The total number of arrested persons in the case is now 11. NSEL chief executive Ajnani Sinha had been arrested on 17th October last year.
The FT Group owns 99.99% stake in the now crippled commodities spot exchange which was ordered to be closed by the Government on July 31 last year following a payment crisis.
The arrests came seven months after an FIR was registered by the Economic Offences Wing (EoW) of Mumbai police against Shah (promoter-director of the NSEL) and others on charges of cheating, forgery, breach of trust and criminal conspiracy to make quick profit.
Shah’s arrest is likely to cripple the FTIL and delay its plan to get its 26% stake in the country’s largest commodities exchange reduced to 2%.
MCX and FTIL closed Thursday 6.5% and 5% down at Rs499 and Rs276.7, respectively on the BSE, while the 30-share benchmark ended the day marginally up at 22,376.
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