Government stance in FTIL-NSEL case: fit and proper?4 min read 03 Nov 2014, 08:14 PM IST
The government can take a leaf or two on how FMC acted with the FTIL group
The Forward Markets Commission has handled the fallout of the National Spot Exchange Ltd (NSEL) crisis fairly well. Of course, as NSEL was kept outside regulatory purview by the previous government, it couldn’t do much except alert the government about the impending doom. But with respect to Multi-Commodity Exchange of India Ltd (MCX), which it regulates, it quickly moved to ring-fence it from NSEL’s troubles. It shunted out the management appointed by the Financial Technologies (India) Ltd (FTIL) group. Eventually, it also forced the group to sell its entire stake in MCX by ruling that FTIL was unfit to hold shares in commodity futures exchange.
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