Financial Technologies tanks 25% on likely ban on e-series contracts at NSEL

MUMBAI: Shares of Financial Technologies India, the promoter of National Spot Exchange Ltd, today tanked by nearly 25 per cent following reports that the government is likely to ban trading in e-series contracts on the NSEL.

After making a weak opening, shares of FTIL further plunged 24.98 per cent to Rs 148.50 on the BSE.

In the last trading session, FTIL shares had rebounded by 31 per cent.

FTIL-promoted MCX shares were down by 10 per cent to Rs 331.85 -- its lower circuit limit.

The move could hit NSEL's business further. NSEL offers e-series contracts in gold, silver, copper, zinc, lead, nickel and platinum.

On July 31, the NSEL suspended trade in all contracts except 'e-series' following the government's direction not to launch new contracts because of violation of some rules.

NSEL is grappling with the problem of payment settlement of about Rs 5,600 crore after the suspension.

Under e-series contracts, retail investors can buy and sell commodities in demat form. This is a unique market segment which functions like the cash segment in equities, but offers commodities in the demat form in smaller denominations.

NSEL had yesterday said it had formed an independent panel to advise and monitor the process for settling Rs 5,600 crore dues and wanted strict action against brokers not cooperating with the payment plan.