Financial Tech surges over 17% on proposal to settle NSEL case

MUMBAI: Shares of Financial Technologies (FTIL) surged over 17 per cent in trade after the company proposed 'without prejudice' settlement in NSEL case.

The FTIL proposal ensures that 94 per cent of clients will receive 50-100 per cent of claims. The process is expected to be completed in 3-4 weeks after completing legal process.

At least eight defaulters account for Rs 4,823 crore of payout. According to the company the aim of the proposal is to end conflict in NSEL case.

Prashant Desai, MD & CEO of FTIL told reporters that the company needs support from government, brokers and NSEL for the settlement. The company has taken first step to propose on resolution side and the proposal will not work if all constituents don't co-operate.

Meanwhile, NSEL Investors Action Group (NIAG) has rejected FT’s offer claiming it to be unfair, inequitable & unjust.

“We investors of NSEL at NIAG summarily turn it down (offer) as it is unfair, inequitable and unjust. It would be worthwhile to note that FTIL chairman Jignesh Shah on 5th August 2013 promised NSEL investors 100 per cent payment with 16% interest in front of full media glare,” NIAG said in a statement.

“This attempt by the masterminds of 5600 crore NSEL fraud to get away by paying a paltry sum is reprehensible and though given ‘without prejudice’ is actually an admission of guilt,” it added.

The stock ended at Rs 191.75, up 13.19 per cent, on the BSE. It surged 17.47 per cent to touch intraday high of Rs 199 in trade today. Volumes surged to 11.78 lakh shares against two-week average of 2.26 lakh shares on the BSE.