Fin Tech, MCX fall as cops arrest Jignesh Shah, aide - Economic Times

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MUMBAI: Shares of Financial Technologies and Multi Commodities Exchange fell as the trade began after the Mumbai Police arrested the 46-year-old Jignesh Shah, founder of the FT Group and his trusted lieutenant Shreekant Javalgekar.

The Economic Offences Wing arrested the duo for "not cooperating" with the police in connection with the Rs 5,600-crore scam at National Spot Exchange Limited, a subsidiary of the Shah-promoted Financial Technologies.

"Both Fin Tech and MCX have large foreign investment and the arrest of Shah would slow down plans to remove him from ownership and sell his stake in the company to potential bidders," said Maybank KimEng India report.

Meanwhile, Financial Technologies has called a board meeting to discuss the arrest of Shah.

"I am really shocked at Shah's arrest. The board meeting has been called tomorrow to take stock of the situation and decide about the future course of action," FTIL director and former MCX chairman Venkat Chary told PTI.

At 09:25 a.m.; Financial Technologies was locked at 5 per cent lower circuit at Rs 276.70 and MCX was 3.97 per cent down at Rs 511.50.

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