Reeling under payment crisis, FTIL to exit bourse business

The earlier deadline set by the board for the sale was September 30; however, that may be delayed by a few weeks.

2 min readChennaiSep 24, 2014 05:03 AM IST

Plagued by the payment crisis at the National Spot Exchange (NSEL), Financial Technologies-India (FTIL) has decided to exit exchange and regulated businesses, both in India and abroad. Instead, it will now focus on software technology development and build on its core competency of IP-centric technological innovations.

Speaking to reporters after the 26th AGM, Venkat Chary, chairman & independent non-executive director, FTIL, said the company has decided to go back to its technology roots and rediscover newer areas. He said there is huge scope for technology innovation in India and a large portion of the 1,500 employees in the company are trained in this field. On whether technology business can compensate for the exchange business, Chary said that it would certainly.

The company will now focus on its technology vertical, that includes exchange technology, brokerage, connectivity and consulting solutions, apart from harnessing newer technologies, markets and segments.

Given its experience in delivering mission-critical technologies for financial markets, the company said it is confident of leveraging the same towards opening newer markets and industry segments that have traditionally lagged in adopting technology. It is looking for greater engagement in cloud, social media, mobile and analytics.

The company recently appointed Axis Bank to help sell its stake in the Indian Energy Exchange (IEX). “We are in the process of exiting completely from the exchange-related businesses, most of which have already been sold, and are gearing up to sell our stake in IEX. The company holds about 25% in IEX, ” Chary said.

The earlier deadline set by the board for the sale was September 30; however, that may be delayed by a few weeks.

Without divulging names, he said many people have shown interest in buying the IEX stake. FTIL has already mobilised $150 million by selling Singapore-based bourse SMX, Rs 900 crore by selling its 26% stake in MCX and another Rs 240 crore by selling stake in National Bulk Handling Corporation.

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On whether the board is considering the removal of company MD Jignesh Shah, Chary said: “We have full confidence in Jignesh Shah”.

Sajan C Kumar | The Financial Express

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