Shares of Multi Commodity Exchange of India and Financial Technologies (India) Ltd today rose by up to 3 per cent a day after SEBI ruled Financial Technologies group is not “fit and proper” to own stakes in any stock exchange.

Despite the negative news, shares of MCX opened the day on a positive note and further went up by 3 per cent to ₹518 during morning trade on the BSE.

Shares of FTIL also rose by 3 per cent to ₹387.30.

SEBI yesterday ruled that the crisis-hit Jignesh Shah-led Financial Technologies group is not “fit and proper” to own stakes in any stock exchange and directed it to divest existing holdings in MCX-SX and four other entities.

Besides MCX Stock Exchange, the group holds equity in its rival NSE, Delhi Stock Exchange (DSE), Vadodara Stock Exchange (VSE) and MCX-SX Clearing Corporation (MCX-SX CCL) and all these holdings would need to be disposed off within 90 days.

Financial Technologies (India) Ltd is the flagship firm of the Shah-led group and one of the original promoters of MCX-SX.

In a late evening order yesterday, SEBI said FTIL is not a “fit and proper person to acquire or hold any equity share or any instrument that provides for entitlement for equity shares or rights over equity shares at any future date, in a recognised stock exchange or clearing corporation.”

(This article was published on March 20, 2014)
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