New Delhi, Aug 1: Shares of Financial Technologies (India) Ltd (FTIL) and Multi Commodity Exchange of India Ltd (MCEIL) crashed to new 52-week lows after 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, which in turn is a group company of MCEIL. Both the listed companies FTIL and MCEIL tanked in morning trade on the bourses today and hit a new 52-week low of Rs 243 and Rs 512.05, respectively, on the BSE. FTIL opened on a weak note and then crashed a whopping 62.69 per cent to an early low of Rs 202 on the BSE. Similar movement was seen on the MCEIL counter where, the stock tanked 20 per cent and hit its lower circuit limit of 512.05 on the BSE.
In a statement yesterday National Spot Exchange Limited(NSEL) 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, the NSEL statement added.
According to market analyst this announcement created confusion amid investors. Moreover, the suspension by the National Spot Exchange has sparked concerns of cash crunch and default of payment in the Financial Technology-promoted commodity bourse.