Supreme Court declines Financial Technologies plea to stay FMC order

NEW DELHI: Supreme Court today declined the plea of Financial Technologies Ltd ( FTIL) to stay Forward Markets Commission's (FMC) ruling that the company was not fit to have stake in any stock exchange and divest its stake in Multi Commodities Exchange ( MCX).

A bench consisting of Justices Vikramjit Sen and C Nagappan noted that the company's petition against the order was pending before the Bombay High Court after which Financial Technologies, promoted by Jignesh Shah, withdrew its plea.

The apex court, however, issued notice to Sebi on another petition filed by FTIL against the market regulator's order directing it to divest some of its stake in the MCX Stock Exchange.

During the hearing, Senior counsel Abhishek Manu Singhvi, appearing for FTIL, contended that other regulators had also passed directions to divest shares, forcing the company to sell shares causing a loss of Rs 284 crore.

Advocate Shyam Divan, appearing for FMC, informed the bench that FTIL had fully complied with the FMC's order and divested its entire stake in MCX.

He said that since the matter was pending before the Bombay High Court, no interim relief was called for.

Financial Technologies (India) Ltd is the flagship firm of Shah group, which is battling a Rs 5,600 crore payment crisis at group entity National Spot Exchange Ltd (NSEL).