Financial Technologies plunges 9.46% on BSE

Shares of the MCX Stock Exchange's promoter, Financial Technologies, on Friday tumbled over 9 per cent in early trade, to hit a month-low on the Bombay Stock Exchange (BSE), a day after market regulator Securities and Exchange Board of India (Sebi) rejected the stock exchange's application for a full-fledged bourse status.

Reacting sharply to the Sebi's move, shares of Financial Technologies (FTIL) tanked 9.46 per cent in the start of the session, to a four-week low of Rs 1,242 on BSE.

On Thursday, Sebi had rejected the plea of MCX Stock Exchange Ltd (MCX-SX), saying shareholding norms had been violated and that its promoters lacked honesty.

FTIL shares also witnessed a steep decline on the National Stock Exchange - plunging 9.37 per cent, to a low of Rs 1,244.30.

"The fall in the shares is just the knee-jerk reaction, as the investors became nervous after the Sebi rejection," CNI Research CMD, Kishore P Ostwal, said.

MCX-SX is promoted by India's largest commodity bourse, MCX, and group company FTIL. It currently offers trading in currency futures only.

In April, MCX-SX had applied to deal in interest-rate derivatives, equity, futures and options on equity and wholesale debt segments, and all other segments where BSE and NSE have a presence.