The matter of NSEL and FTIL keeps taking intriguing turns and undergoes a new phase with each passing day. It has the hopes of a number of people who have been deceived by the brokers of NSEL at stake. Well, looking at the FTIL and NSEL’s merger case, calling it an utter chaos is appropriate at the present moment. It seems like the case is wavering between the genuineness of trading clients to their “willful ignorance”. The incongruousness of the prevailing system of administration of justice is clearly evident from the forcible merger of NSEL into its promoter, Financial Technologies (India) Ltd (FTIL). Even the actual number of genuine traders is not clear till date, which makes the government’s decision to merge the promoter and its subsidiary completely obtuse. It is imperative at this stage for the concerned authorities to come up with a well thought of decision as the merger will let the real defaulters off the hook. The premise for proposing it in the first place is misleading as the real solution lies in the recovery from defaulters.
Apparently the Forward Markets Commission’s (FMC) and Ministry of Corporate Affairs (MCA) are violating the norms of the Companies Act, section 396 for this amalgamation, where it has been mentioned clearly that it contains the “Power to provide for amalgamation of companies in public interest”.
The absurdity of this case lies in the fact that the MCA continues to press on with its effort at suppression of the FTIL board, the main disputation for which is the opposition of NSEL & FTIL merger by the FTIL board. It holds a mirror to the dichotomy within the same department regarding the same issue. The application to seek six weeks time to respond to Financial Technologies’ challenge of final merger order issued in February this year reflects upon the uncertainty and ambiguity of MCA in this case. Thus, merging the two companies is clearly not the solution as such forced merger propositions spell doom for corporate India, hijack its corporate intelligence and dent the FDI sentiments.