FTIL promoter Jignesh Shah gets arrested; company shares down over 6%

Shares of Financial Technologies (India) fell by over 6% on Wednesday after CBI arrested the promoter of the firm, Jignesh Shah, for alleged cheating and suppression of facts in getting SEBI extension to MCX-SX to continue as a private stock exchange in violation of norms.

After a weak opening, shares of the company further lost 6.17% to Rs 78.20 on BSE. At NSE, the scrip declined by 6% to Rs 78.

Shares of MCX were, however, trading 2.33% higher at Rs 1,032.60 on BSE.

"The Central Bureau of Investigation has arrested promoter of two private companies and conducted searches at nine places in Mumbai, including the residence and office premises of the said promoter of Mumbai-based two private companies," CBI spokesperson R K Gaur said on Tuesday.

MCX-SX had started functioning as a stock exchange in 2013 after a long legal battle with SEBI.

Meanwhile, 63 Moons Technologies (formerly FTIL), said in a statement on Tuesday "Pursuant to the applicable regulations of SEBI (LODR), Regulations 2015, please be informed that Central Bureau of Investigation, Economic Offence Wing, Mumbai, is conducting search in connection with FIR...relating to recognition granted by SEBI to MCX-SX (now Metropolitan Stock Exchange of India Limited)."