The Bombay High Court ordered `a status quo’ till December 22 to the proposed merger of Financial Technologies India Ltd (FTIL) with the National Spot Exchange Ltd. (NSEL).
The order was passed by a division bench of Justice V M Kanade and Anuja Prabhudesai while hearing a petition filed by Financial Technologies India Ltd (FTIL) challenging the proposed merger.
The court asked National Spot Exchange Ltd. (NSEL), Union Ministry of Corporate Affairs and Investors Forum to file replies to the petition by December 22.
Financial Technologies India Ltd (FTIL) has questioned the order issued by the Corporate Affairs Ministry on October 21 with regard to the amalgamation/merger.
The government has ordered the merger of the bourse with its parent firm FTIL in order to ensure faster recovery of dues for entities hit by the Rs 5,600 crore fraud at National Spot Exchange Ltd. (NSEL).
Financial Technologies India Ltd (FTIL) owns 99.99 percent of National Spot Exchange Ltd. (NSEL), on which trading was suspended after the fraud came to light in July 2013.
The proposal of merger would take a final shape after taking into account submissions or objections made by the shareholders and creditors of the two companies. Comments have been sought from them till December 20.