Home >Companies >FTIL-NSEL merger stayed till 22 April

Mumbai: The Bombay high court on Friday extended relief for Financial Technologies India Ltd (FTIL) from the merger order, which proposed to merge wholly-owned subsidiary National Spot Exchange Ltd (NSEL) with the parent company.

The stay on the order (issued by the ministry of corporate affairs or MCA) will continue till 22 April so that the Union of India can study the amended writ petition filed by the Jignesh Shah-founded company and file an appropriate reply.

The directions were given by the Bench comprising chief justice D.H. Waghela and justice M.S. Sonak after FTIL filed an amended writ petition based on the final merger order by MCA.

The MCA on 12 February ordered a merger between FTIL and its unit NSEL, making FTIL responsible for the liabilities of the fraud-hit commodities bourse.

It’s the first time that the government forced a merger between two private entities, using a provision of the Companies Act that allows it do so in public interest.

FTIL owns 99.99% of NSEL, on which trading was suspended after a 5,574.35 crore fraud came to light in July 2013.

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