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The National Spot Exchange Ltd (NSEL) investors’ forum has objected to any move by promoter Jignesh Shah to dilute his stake in the holding company Financial Technologies (FTIL).
NSEL has failed to settle about Rs 5,600 crore to investors after it suspended trading on July 31.
“We have reliably learnt that Jignesh Shah is at an advanced stage of discussion for sale of a substantial part of his shareholding in Financial Technologies,” said Arun Dalmiya, Secretary, NSEL Investors' Forum. He has also sent a letter addressed to Shah.
Warning the parent company board of legal action with regard to Shah’s stake sale, Dalmiya said in the letter that the board of directors was the custodian of the asset of Financial Technologies, which includes NSEL.
The letter said that there has been complete failure by the board to manage such assets commensurate with its fiduciary duty.
A Financial Technologies spokesperson denied any stake sale move by the promoters. Jignesh Shah holds 48 per cent stake in Financial Technologies. Shah is also the Director and Vice-Chairman of the National Spot Exchange.
Despite the trouble being faced by Group companies, Financial Technologies shares have increased 67 per cent over the last three weeks. It rose to Rs 217 on Thursday before dropping eight per cent to Rs 199.20 on Friday. This happened after the investors’ forum shot off the letter.
The letter said: “The present attempt by Jignesh Shah to dispose of a part of his stake even as the default by NSEL continues, is evidently an attempt to intentionally distance himself from the ongoing crisis… and a clever ruse to deflect attention from the liability for the present fraud.’’
The forum has said it would not allow NSEL promoters to fritter away their assets, as these could be used to pay investors.
“We strongly apprehend that the sale of Financial Technologies assets is not a genuine transaction,” Dalmiya said in the letter.
> suresh.iyengar@thehindu.co.in
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