Opposed to merger with FTIL, says NSEL

Terming it “illegal and malafide”, NSEL opposed the ministry of corporate affairs’ (MCA) proposal to merge the firm with its parent company Financial Technologies (India) Ltd (FTIL).

By: ENS Economic Bureau | New Delhi | Published: October 16, 2015 2:56 am

Terming it “illegal and malafide”, fraud-hit National Spot Exchange Limited (NSEL) on Wednesday opposed the ministry of corporate affairs’ (MCA) proposal to merge the firm with its parent company Financial Technologies (India) Ltd (FTIL).

“It is a misconception that the money will come from FTIL after the amalgamation. We believe that FMC and certain other officials misled the MCA into passing the draft order,” Prakash Chaturvedi, MD & CEO, NSEL, said. He added that the FMC has not taken any recognisable action against brokers who indulged in wrong doing while it “illegally declared FTIL not fit and proper”.

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  1. R
    Raj
    Oct 17, 2015 at 7:32 am
    Section 396 of Companies Act, 1956 is amalgamation in 'Public' interest. How does merging FTIL with NSEL help the general public? Does it even impact 0.5% of the Indian public? This impacts only a small private group of people and not public at large. Even then how does government define public interest as interest of 13K investors of NSEL and but the interest of 50K FTIL shareholders is not the public interest? If tomorrow ICICI bank gives investors losses, will government merge it with Infosys in public interest? They too have some members who have served both the firms as directors. And as per Indian government investor interest of one company is enough to form ‘public’ interest. Request government / courts to please not manite law and violates basic structure of economics and Limited Liability Company.
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