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Money Aug 23, 2013

NSEL crisis: 2 Financial Technologies directors resign from board

New Delhi: Days after top management at national Spot Exchange was sacked, two directors on the board of crisis-ridden exchange's parent company FTIL have resigned.

Financial Technologies (India) Ltd (FTIL), the promoter of National Spot Exchange Ltd (NSEL), today said the company's two directors R Devarajan and PR Barpande have resigned from the board.

Reuters

The bourse could manage to pay just over half of Rs 175 crore first tranche of payment due to investors on August 20. Reuters

"...Mr R Devarajan and Mr P R Barpande, Directors of the company, have resigned from the Board and its Committees and thus cease to be the Directors of the company," FTIL said in a filing with the BSE.

The resignations of these two directors come amid payment crisis to the tune of Rs 5,600 crore in NSEL.

Earlier this week, NSEL board had sacked its entire top management, including CEO Anjani Sinha.

The bourse could manage to pay just over half of Rs 175 crore first tranche of payment due to investors on August 20.

FTIL has appointed N Balasubramanian as an additional director (Non-Executive and Independent) on the board, the filing added.

FTIL is headed by Jignesh Shah who is also the Vice-Chairman on the board of NSEL.

NSEL is facing the problem of settling Rs 5,600 crore dues after it suspended trade on July 31, following
government direction in the wake of violation of certain rules by the exchange.

Meanwhile, commodities market regulator Forward Markets Commission (FMC) had already written to NSEL Board saying the default in payment in first tranche casts "serious doubts" on the credibility of the exchange.

Shares of the FTIL were up by 1.89 per cent and closed at Rs 132.20 apiece on BSE today.

PTI


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