Financial Technologies tumbles 11 pc after SEBI jolt to MCX-SX

MUMBAI: Shares of MCX-SX stock exchange promoter Financial Technologies tanked by 11 per cent on the BSE today, a day after market regulator SEBI rejected its application for full-fledged bourse status.

Yesterday, SEBI rejected the plea of MCX Stock Exchange Ltd (MCX-SX) for full-fledged bourse status, saying shareholding norms have been violated and the promoters lack honesty.

Financial Technologies' scrip reacted sharply to SEBI's move and nosedived by 11 per cent to settle at Rs 1,221 on the Bombay Stock Exchange.

During the day, the scrip tumbled by as much as 11.43 per cent to hit a one-month low of Rs 1,215.

"The company's fundamentals are strong and the weakness in the stock is just the knee-jerk reaction as the investors became nervous after the Sebi rejected the MCX-SX application," CNI Research CMD Kishore P Ostwal said.

Witnessing similar weakness on the National Stock Exchange, the counter dipped by 11.14 per cent to finish at Rs 1,220.15. About 25 lakh shares of the company were traded on the two bourses.

Meanwhile, the 30-share benchmark Sensex bounced back after a weak start to settle with a gain of 184.17 points at 20,045.18.

MCX-SX is promoted by India's largest commodity bourse, MCX, and another group company, FTIL. It currently only offers trading in currency futures.

In April, MCX-SX had applied for permission to trade in interest rate derivatives, equities, futures and options in the equity and wholesale debt segments and all other segments where the BSE and NSE have a presence.