Monday, August 25, 2014

MCX SX cancels Financial Technologies warrants
[Editor: Today the shares of Financial Technologies Ltd were recommended as a buy at Rs.277-278, for a target of Rs.320-325, in the short term. On the other hand the shares of Allied Digital Services Ltd (Rs.19.40) are buzzing, as the company is the hot favourite to win the mega, Rs.1000 Cr (please clarify the exact value of the tenders from your sources), Mumbai-CCTV-project. The project, announced to enhance security in the city after the 26/11 terror attacks, aims at installing 6,000 CCTV cameras in the city (14 cameras per sq km)]
MUMBAI, AUG 25:  MCX Stock Exchange has extinguished warrants held by Financial Technologies and transferred Rs. 56.25 crore non-refundable interest free deposit issued against the warranted to the capital reserve.

The development will increase the exchange networth to Rs. 160 crore from Rs. 110 crore and help meet SEBI minimum networth criteria of Rs. 100 crore.

The decision to cancel the warrants was taken by the board after perusing legal opinion on the SEBI order dated March 19 and Securities Appellate Tribunal order dated July 9 regarding the warrants held by Financial Technologies.

Earlier this year, the exchange shifted MCX and FTIL from “Promoter Category” to “Public Category”.

Meanwhile, the Comptroller and Auditor General of India has informed that it has concluded the supplementary audit of the financial statements of MCX-SX for the year ended March, 2014 and has mentioned that nothing significant had come to their notice which would give rise to any further comment or supplement to the Auditors’ Report, said MCX-SX in a statement.

The Exchange has shifted its corporate office to its new premises at Bandra Kurla Complex in Mumbai.

Saurabh Sarkar, Managing Director, MCX SX stated that “We are poised for a complete turnaround in the next few months. The recent developments will improve the sentiments of potential investors and restore the faith of the market participants on the turnaround of our exchange.”

Courtesy: The Hindu Business Line
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