The sharp selloff came after the Mumbai police on Wednesday arrested Financial Technologies chairman Jignesh Shah in connection with the Rs. 5,500 crore-fraud at the National Spot Exchange or NSEL, which is a commodity exchange promoted by him.
Mr Shah has been under police investigation since August after NSEL abruptly suspended trade in most of its commodities contracts on July 31 and later defaulted on obligations to market participants because it did not have enough collateral.
Rajvardhan Sinha, additional commissioner in the Mumbai police, said Mr Shah had run "a criminal conspiracy with other accused who were running NSEL".
In March, Financial Tech was ordered to cut its stake in MCX, from 26 per cent to 2 per cent, after the commodities regulator ruled that it was not "fit and proper" to run a bourse. Financial Technologies subsequently announced it would sell the 24 per cent MCX stake, although it has not yet completed the sale.