New Delhi: Financial Technologies (India) and Multi Commodity Exchange of India today said there would be no adverse impact on their businesses after group company National Spot Exchange Ltd decided to temporarily halt trading on one-day forward contracts.
The clarifications came after FTIL and MCX shares plunged. FTIL tumbled 62 percent to Rs 205.05 in late afternoon trade on the BSE, while MCX declined 20 percent to Rs 512.05.
"NSEL has taken a decision to suspend the trading on one-day forward contracts, other than e-series, temporarily. In this context, FTIL states that this action of NSEL does not entail any financial liability on FTIL and that the business of FTIL is as usual," FTIL Chairman and Managing Director Jignesh Shah said in a filing to the BSE.
He expressed confidence that NSEL would resolve the situation within the contours of its bye-laws and rules.
FTIL-promoted MCX, the country's largest commodity exchange, said in a statement to the BSE that NSEL's decision would not affect its operations and financials.
NSEL, promoted by FTIL and National Agricultural Cooperative Marketing Federation, said yesterday it had suspended trading of contracts, other than e-series contracts, till further notice. The exchange also decided to merge the delivery and settlement of all pending contracts and deferred the same for a period of 15 days.
Accordingly, positions outstanding in the contracts will be settled by way of delivery and payment after 15 days.
The exchange would announce a revised settlement calendar and contracts due for settlement after this 15-day period, the NSEL statement added.
According to market analysts, the announcement caused confusion for investors.
First Published: Thursday, August 1, 2013, 16:19