Financial Tech plunges 66% on NSEL crisis, MCX drops 20%

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Financial Tech plunges 66% on NSEL crisis, MCX drops 20%

This article was posted on Aug 1, 2013 and is filed under Market News

Financial Technologies shares crashed more than 66 percent in morning trade Thursday after the National Spot Exchange (NSEL) suspended trading in all one-day forward contracts , except e-series contracts, amid fears of default.

NSEL is promoted by the Financial Technologies India (FTIL) and National Agricultural Cooperative Marketing Federation of India.

The move by the exchange follows directions issued by the Department of Consumer Affairs on July 12, 2013. The exchange had given an undertaking to the Government and simultaneously, with a view to ensure orderly performance of the markets, introduced T+10 contracts with Trade for Trade settlements.

NSEL also postponed settlement of one-day forward contracts. The exchange has decided to merge the delivery and settlement of all pending contracts and to defer it for a period of 15 days. Consequently, the positions outstanding in the contracts will be settled by way of delivery and payment after expiry of 15 days, the release said.

According to a release, a revised settlement calendar will be announced by the exchange for contracts due for settlement after such 15 days period.

For more visit: Moneycontrol.com

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