Financial Technologies slips over 3% as Bombay HC dismisses petition

NEW DELHI: Financial Technologies Ltd (FTIL) slipped as much as 3.5 per cent in trade on Wednesday, after the Bombay High Court dismissed FTIL's motion seeking to restrain the government from moving the Company Law Board to supersede its board of directors.

At 09:40 a.m.; FTIL recouped some of the intraday losses but was still trading 1.6 per cent lower at Rs 187.30. It hit a low of Rs 183.60 and a high of Rs 190 in trade today.

This means the government can now press ahead with its petition before CLB Delhi to replace the board of directors and change the management of FTIL, which, in turn, can argue against this proposed action, ET reported.

The hearing before CLB is kept for Thursday. "The reliefs sought in the present notice of motion are without substance. The notice of motion is dismissed," a bench led by Justice BR Gavai said.

According to the report, FTIL filed the motion as part of its writ petition of November that challenged the constitutional validity of the government's draft order of October 21, 2014 to forcibly amalgamate NSEL with FTIL in public interest under Section 396 of the Companies Act, 1956.