Financial Technologies ordered to divest all holdings in stock exchanges

Financial Technologies ordered to divest all holdings in stock exchangesCapital market regulator Sebi on Wednesday ordered Financial Technologies group to divest its holdings in Multi Commodity Exchange of India Ltd Stock Exchange (MCX-SX) and four other entities.

Sebi ruled that crisis-hit Jignesh Shah-led Financial Technologies group was not "fit and proper" to own stakes in any of the country's stock exchanges.

Financial Technologies group owns stakes in MCX-SX, MCX-SX Clearing Corporation (MCX-SX CCL), the National Stock Exchange (NSE), Delhi Stock Exchange (DSE), and Vadodara Stock Exchange (VSE).

The regulator's order would be applicable for direct as well as indirect holdings of the group in stock exchanges and clearing corporations. Financial Technologies has been asked to divest all of its holdings in the above-mentioned stock exchanges within 90 days.

Financial Technologies (India) Limited (FTIL) is the flagship firm of the Jignesh Shah-promoted Financial Technologies group.

When asked for a comment, a spokesperson for FTIL, said, "We will read the order and then comment."

Around a week ago, CBI registered a preliminary enquiry against former Sebi chief C. B. Bhave and former member K. M. Abraham with regard to alleged irregularities in granting recognition to MCX-SX in 2008 and renewals in 2009 and 2010. The CBI inquiry is trying to ascertain how MCX-SX obtained recognition despite opposition by Sebi.