Some minority shareholders of Financial Technologies have raised objections to the proposed merger of scam-hit National Spot Exchange Ltd (NSEL) with the company.
To ensure faster recovery of dues for entities hit by the Rs.5,600-crore fraud at NSEL, the government last month ordered the merger of the bourse with its parent firm Financial Technologies (India) Ltd (FTIL).
This is also the first time that the Corporate Affairs Ministry ordered a forced merger of private entities using a provision in the Companies Act that allows the government to intervene for “essential public interest”.
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Sources said the ministry had received objections from some minority shareholders on the proposed amalgamation.
Specific details were not immediately available.
The payment crisis at NSEL came to light in July 2013, and the decision to merge it with FTIL has been taken as the bourse is “not left with any viable, sustainable business while FTIL has necessary resources to facilitate speedy recovery of dues.”
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The proposal would have 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.