Govt issues order for merger of NSEL with FTIL
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The Government has issued a draft order for the merger of scam-ridden National Spot Exchange Ltd (NSEL) with Financial Technologies India Ltd (FTIL). The Corporate Affairs Ministry has put the draft order in its Web site.
Financial Technologies, in a notice to the stock exchanges, confirmed that it has received a communication from the Government. "The company is taking appropriate steps in the matter in consultation with the legal counsel of the company," it said
“Whereas the Central Government is satisfied that to leverage combined assets, capital and reserves, achieve economy of scale, efficient administration, gainful settlement of rights and liabilities of stakeholders and creditors and to consolidate businesses, ensure co-ordination in policy, it is essential, in the public interest that FTIL and NSEL should be amalgamated into a single company,” the order said.
It argued that the Central Government has also taken into account the finding/ observations during the course of inspection of the books of account of NSEL and FTIL. This inspection brings out non-compliances of the various provisions of the Companies Act, it said while adding, it is further observed that the management of the affairs of NSEL was being controlled and directed by FTIL and its key managerial persons.
The Central Government has carefully considered the proposal received from the Forward Market Commission (FMC) and the Department of Economic Affairs (CEA) and is of the considered opinion that to leverage the combined assets, capital and reserves for efficient administration and satisfactory settlement of rights and liabilities of stakeholders and creditors of NSEL, “It will be essential in the public interest to amalgamate NSEL with FTIL” (PTI - The Hindu)
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