FTIL plunges 6%, MCX rallies 3% after Jignesh Shah's arrest

NEW DELHI: Shares of 63 moons Technologies (erstwhile Financial Technologies) plunged over 6 per cent, while that of MCX climbed nearly 3 per cent after CBI arrested the founder of the FTIL Group, Jignesh Shah, for third time in two years.

CBI sources told ET that Shah was arrested after being unable to ‘satisfactorily’ reply to the agency's queries related to his and others’ alleged connivance with Sebi officials in getting approval and renewal for erstwhile MCX-SX (now MSEI).

FTIL along with its then associate MCX had promoted the entity in 2008.

Following the development, shares of 63 moons technologies tanked 6.17 per cent to hit a low of Rs 78.20 on BSE.

In a regulatory filing to BSE, the company said, “Financial Technologies has informed BSE that the Central Bureau of Investigation, (CBI), Mumbai, has placed Jignesh Shah, Promoter and Chairman Emeritus of 63 moons technologies (formerly Financial Technologies), under arrest relating to investigation in the matter of recognition granted by Sebi to MCX-SX (now Metropolitan Stock Exchange of India).”

MCX stock, on the flip side, jumped 2.86 per cent to hit a high of Rs 1,038.

Shah will be produced before the CBI designated court on Wednesday," the CBI source said.