This presentation explains about the rise and fall of Financial technologies

1. FINANCIAL
TECHNOLOGIES

2. Financial Technologies
Indian Financial services company, formed in1988.
Founded by Jignesh Shah
Promoted by Financial technologies group
Commenced operations starting off with the development
of technology products that served to connect the
financial markets.
This group has three business divisions comprising ten
exchange ventures, six ecosystems and multiple
technology offerings

3. FTIL Business
Exchange Ventures
• It creates exchange networks for transparency in financial
markets in Africa, Middle East, Central Asia, China and
other Asian countries. It is a network provider for MCX,
IBSFOREX, GBOT, SMX and DGCX, among others.
Ecosystem ventures
• The ecosystem business complements the exchange
business by capturing value of all upstream and
downstream transactions around the exchanges.

4. National Spot Exchange Limited
National Spot Exchange Limited is promoted by Financial
Technologies India Ltd and National Agricultural cooperative
marketing federation of India(NAFED).
NSEL is commodities exchange in India
It is a market place where farmers, traders, corporates,
processors and importers can sell and buy at the best possible
and competitive rates.
NSEL mission is to develop a common Indian market by setting
up a nation-wide electronic spot market and providing state of
art trading, delivery, and settlement facilities in various
commodities

5. NSEL Scam impact on FTIL
NSEL scam is a systematic and premeditated fraud
perpetrated in the commodity market on the National Spot
Exchange.
NSEL scam is estimated to be a Rs 5600 crore fraud that
came out to light after the National Spot Exchange failed
to pay its investors in commodity pair contracts after
31July 2013.
The defaulters submitted false and fabricated stock offer,
letters, false sale bills without actually offering physical
stock in connivance with NSEL warehousing team

6. Contd…..
NSEL's payment troubles started after it was ordered by regulator
Forward Markets Commission (FMC) in July 2013 to suspend spot
trade in most of its contracts due to suspected trading violations.
NSEL could not settle outstanding trades.
FTIL owns 99.9 per cent of NSEL, which has suspended all trading
operations since the payment shortages.
FTIL blamed NSEL executives and the trading parties for the default.
There were 24 members who defaulted payment to about 13,000
investors.
This triggered frantic selling in two listed group companies, FTIL and
MCX

7. FTIL exists MCX
Financial technologies plummeted over 60 percent
Jignesh Shah founder of FTIL was booked in FIR.
On 19 March 2014, the Securities and Exchange Board of India
(Sebi) ordered FTIL and MCX managements to divest their
holdings both in equity shares and convertible warrants in the
equity bourse after finding them not “fit and proper” to control
any exchange.
FTIL challenged Sebi’s order in the Securities Appellate
Tribunal (SAT), which on 9 July upheld the ruling and gave
FTIL and MCX four weeks to comply.

8. Contd..
FTIL plans to exit exchange business
FTIL managed to sell its 26 percent stake of MCX
On 20 July, Kotak Mahindra Bank bought a 15 percent
stake in MCX from FTIL for Rs 459 crore.
 Earlier in the month, FTIL had sold 6 percent in the open
markets to a clutch of investors.
Company declares to sell its 25% stake in Indian Energy
exchange for as high as 400 crore.

9. Life after MCX
MCX pie of 850 crore plus 400 crore IEX makes nearly
1250 crore which is almost equal to current market capital
of FTIL.
Current market capital of the company went as low as
500 crore.

10. Conclusion
Board members clarifies Jignesh shah to resign as
chairman.
Board meet elicits that Venkat Chary now will take over as
the chairman as well as an independent director on the
board of FTIL.
The board sends a downright message that the company
will continue to function normally with no changes. Going
forward, they will have a roadmap dealing with various
regulatory issues.

11. Thank you