Press Esc to close
Monday 01 September 2014
News updated at 4:34 PM IST
Weather
Max: 27.4°C
Min : 19.4°C
In Bangalore
Sunny day

Sebi initiates probe into MCX, FTIL stock crash

August 1, 2013, Mumbai, PTI:
File Photo.

SEBI has begun a probe into a major crash in the shares of commodity bourse MCX (Multi Commodity Exchange) and its promoter Financial Technologies triggered by issues at group entity National Spot Exchange Ltd (NSEL), and has sought details from stock exchanges and other agencies in this regard.

Financial Technologies India Ltd (FTIL) scrip on Thursday fell by nearly 65 per cent, while that of MCX plunged by 20 per cent over concerns about NSEL.

While the shares have been on a downward path for quite some time, there was a major fall on Thursday morning after NSEL suspended trading of contracts, other than e-Series.

The issues being looked into by SEBI include the concerns of potential defaults to pay-outs to brokers and clients, fraudulent trade practices and possible violation of insider trading norms in the two listed group companies of NSEL.


A number of brokers are present in both commodity and equity segments and there is a potential systemic risk from issues of potential defaults spilling over to the stock market as well, sources said.

SEBI, which is also in touch with the Finance Ministry, commodity regulator FMC and Consumer Affairs Ministry in this regard, is looking into the trading pattern of some brokerage firms as well as many other entities to check whether they had any advance information about problems at NSEL.

The brokerage firms which had significant exposure to NSEL are specially under scanner, sources added.

While the shares have been on a downward path for quite some time there was a major fall this morning after the  the National Spot Exchange suspended trading of contracts, other than e-Series contracts till further notice.

The National Spot Exchange is being promoted by FTIL.

In a statement yesterday NSEL said it has suspended trading of contracts, other than e-Series contracts till further notice. The statement further noted that the exchange has also decided to merge the delivery and settlement of all pending contracts and deferred the same for a period of 15 days. Accordingly, the positions outstanding in the contracts will be settled by way of delivery and payment after expiry of 15 days.

The exchange would announce a revised settlement calendar and contracts due for settlement after this 15 days period.

Go to Top

Photo Gallery
Vehicles ply on a waterlogged road after heavy rains in Bhopal on...

Vehicles ply on a waterlogged road after heavy rains in Bhopal on...

Amitabh, Aishwarya and Abhishek Bachchan visit Lalbagucha Raja Mandal at Lalbaug in Mumbai on...

Amitabh, Aishwarya and Abhishek Bachchan visit Lalbagucha Raja Mandal at Lalbaug in Mumbai on...

Rabbi Moshe Gourarie from New Jersey looks at a wall riddled with bullet marks from the 2008...

Rabbi Moshe Gourarie from New Jersey looks at a wall riddled with bullet marks from the 2008...

Childrens walks with an umbrella as it rains at Rajpath in New Delhi on Sunday....

Childrens walks with an umbrella as it rains at Rajpath in New Delhi on Sunday....

Bollywood actor Hrithik Roshan with father Rakesh Roshan and others participates in a procession...

Bollywood actor Hrithik Roshan with father Rakesh Roshan and others participates in a procession...

Devotees immerse idols of Ganesha into a lake in Thane , Mumbai on Saturday.

Devotees immerse idols of Ganesha into a lake in Thane , Mumbai on Saturday.

Prime Minister Narendra Modi during his visit to the Golden Pavillion Temple in Kyoto, Japan on...

Prime Minister Narendra Modi during his visit to the Golden Pavillion Temple in Kyoto, Japan on...

Bollywood actor Amisha Patel and family members participates in a procession for the immersion...

Bollywood actor Amisha Patel and family members participates in a procession for the immersion...

Prime Minister Narendra Modi during a meeting with CEO of Nidec Corporation, Shigenobu Nagamari...

Prime Minister Narendra Modi during a meeting with CEO of Nidec Corporation, Shigenobu Nagamari...

Prime Minister Narendra Modi during a meeting with Kyoto Mayor Daisaku Kadokawa in Kyoto, Japan...

Prime Minister Narendra Modi during a meeting with Kyoto Mayor Daisaku Kadokawa in Kyoto, Japan...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523