Question: Do any of you have a view of the company Financial Technologies (India) Ltd?

Praveen Kumar Veer: Indian Judiciary competes with snail on clearing cases. Yes, this is high profile and judgement could be bit faster, but unless anyone has legal insight this situation is a big NO. Cash will not be there if judgement is against FTIL.Its referred here in this investor blog as well.…/
Justin Carroll: Well, I am a lawyer and I must say that I find the power of any regulator to order one legal entity to acquire the legal liabilities of another legal entity extraordinary, irrespective of whether the latter entity is the parent of the former entity or …See more
Praveen Kumar Veer: India is no ordinary country; Satyam scam in most countries would have closed such a company. If its simple ‘liabilities’ of subsidiary, you are right. Where there was malafide scam, you can’t term it as simple liability. Well AmEx salad oil scandal …See more
Is the forced FTIL-NSEL merger really in public interest?
Justin Carroll: Thank you. So are you saying that use of section 396 of the Companies Act in the context of private corporations is a first under Indian law?
Praveen Kumar Veer: Yes. 2nd article details those.
Justin Carroll: Thank you. FTIL seems to have a great risk/reward play-off. Sadly, I have just learned that I cannot buy Indian equities on my IB platform unless I am an Indian national.
Praveen Kumar Veer: Quite a few of well known investors have a thumb rule in India. I follow same principle on this. That’s not to bet against govt 🙂
Vidyanshu Pandey: I am interested in this stock. Can discuss if you want.
Vidyanshu Pandey: To add, I have done quite a bit of research and am invested in this stock. So if you have specific questions or risks, I can probably discuss. Might help me to think it from the other side too…so pls feel free.
Justin Carroll: Thanks Vidyanshu. I guess the two main questions that I have are whether the order by the Indian regulator is likely to be upheld by a court and, if it is, what the total liabilities of FINANTECH’s subsidiary are likely to be.
Vidyanshu Pandey: Justin, both are very important questions. I have asked myself these questions and done some analysis based on which I have put my money. I will write out a semi-detailed post in some time and message it to you.
Justin Carroll: Thanks Vidyanshu, I will do some research myself and see if I can add anything to your research
Sayantan Chakraborty: it used to be 3000 /- once upon a time avoid
Justin Carroll: Have you seen its balance sheet?
Sayantan Chakraborty: company is not in good phase
Justin Carroll: They’re the only companies that I am interested in.
Abdul Haque: Justin Carroll pls look at the corporate governance and promotor integrity. Highly questionable. It’s got another subsidery MCX. Great business but big question over the management
Justin Carroll: Maybe. But when the stock is trading at a 65% discount to net cash, you’ve got to ask yourself: could it be that the market has overreacted – perhaps just a little bit?
Deepak Jindal: Sell
Bhaskar Jain: Stay away !!
Vidyanshu Pandey: Guys pls. also give some reason why you are recommending to stay away. Reasons I am reading are – 1. Cash will not be there if judgment is against FTIL, 2. Something about corporate governance and promoter integrity (not sure about what this one actually is)? are there any other reasons?
Bhaskar Kaushal: Vidyanshu Pandey is page containing info about the NSEL .It is the same NSEL which merged with FTIL .If you still think this info is insufficient to prove FTIL is a scam then check out this one too
NSEL scam.This – Wikipedia, the free encyclopedia
Bhaskar Kaushal:
National Spot Exchange – Wikipedia, the free encyclopedia
Vidyanshu Pandey: Bhaskar, I am no one to declare something as a scam or otherwise. That’s for the courts and police to decide and no one else. But I am interested in knowing what are the reasons people are advising other people to not buy FTIL. I want to gather facts. If you have something else other than these links pls. share…Thanks.
Bhaskar Kaushal: 1.Its a ponzi scheme as per the source thus leads to bad reputation of the company and thus attracting least number of buyers as per me.
Bhaskar Kaushal: And yeah sure if you want to short sell(though its not recommended ) it in near future.But after scrutinizing this stock and its history these are my reasons
Vidyanshu Pandey: Thanks Bhaskar. I don’t short stocks. But I like to buy very cheap stocks 🙂
Justin Carroll: Is Jignesh Shah still the CEO of FTIL? I would be concerned if he was.
Vidyanshu Pandey: No, he is not Justin. Jignesh Shah’s shares have been attached by the EOW and Jignesh has been relegated to a mentorship role. Jignesh is not even in the Board of Directors anymore.
Justin Carroll: Thanks Vidyanshu. If that is the case, then we are back at where we started: either FTIL is a distinct legal entity from its subsidiary under Indian law or it is not. The fact that Jignesh Shah sat on the boards of both FTIL and NSEL (although on the…See more
Vidyanshu Pandey: Thanks a lot Justin. Have asked someobe for details will get back to you soon with the other facts.