Two more directors of Financial Technologies have put in their papers as controversy rages over trade settlement at its subsidiary National Spot Exchange Ltd.
C. M. Maniar and N. Balasubramanian have resigned from the board and cease to be the directors of the company, said Financial Technologies in a filing to the BSE. Incidentally, their resignation comes on the heels of FTIL extending a bridge loan of Rs 175 crore to the beleaguered NSEL on Tuesday.
Last week, two other FTIL directors R. Devarajan and P. R. Barpande resigned from the board.
After the latest round of resignations, the FTIL board now comprises Jignesh Shah, Chairman and Group CEO, Dewang Neralla and Manjay Shah, whole-time directors, besides two directors Chandrakant Kamdar and Ravi K Sheth.
Distressed investors of NSEL held a demonstration in front of FTIL office in suburban Mumbai demanding early resolution to the trade-settlement crisis.
“We have serious concern about the safety of investments in commodity and other exchanges. Immediate action is necessary to restore the confidence of investors in the financial market which has been heavily dented by the latest development,” said Sharad Kumar Saraf, Chairman, NSEL Investors Forum. NSEL investors also welcomed the Government move to appoint a specific and focused high-powered committee under the chairmanship of Arvind Mayaram, Secretary, Economic Affairs.
Investors also appealed to Sachin Pilot, Minister of Corporate Affairs, to initiate action by the Serious Fraud Investigating Office. Shares of FTIL rose 7 per cent to Rs 141.