FTIL shares plunge 12% as EOW seizes assets worth Rs 2000 crore

Shares of Financial Technologies (India) Ltd plunged 12% on Wednesday during the early trade after the Economic Offences Wing (EOW) of Mumbai Police on Tuesday seized movable and immovable assets of the company.

At 0921 hours, the shares of the company were trading at Rs 75.85, down 11.13% as against the previous close at Rs 85.35. It touched a high at Rs 77 and low at Rs 70.20.

The EOW has seized assets worth Rs 2000 crore under the Maharashtra Protection of Interest Of Depositors Act (MPID Act).

When the Exchange sought clarification from the company with respect to the news, FTIL in a regulatory filing said, "We have received a letter from EOW dated 18/7/2016 today on 19/7/2016 securing assets of FTIL. 63 moons is a listed company having 63000 plus shareholders and about 1000 plus employees. We will take all legal remedies to protect their interest. There is no legal basis for the said action and we will be moving court soon on the said letter".

Last week, on July 12, the founder of FTIL and chairman, Jignesh Shah was arrested by Enforcement Directorate and will be kept in the police custody till August 1. 

Shah was arrested due to non-cooperation with the investigative agencies in the money-laundering charges of Rs 5,600 crore National Spot Exchange Ltd (NSEL) scam.