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The Bombay High Court has stayed till March 31 the MCA's final order directing the merger of crisis-hit National Spot Exchange Ltd (NSEL) with Financial Technologies (India) Ltd (FTIL).
FTIL has been given time till March 15 to file a response challenging the final order passed by the Ministry of Corporate Affairs (MCA) last Friday.
Hearing on the matter is likely on March 17, sources said.
The Centre had last Friday directed the merger of NSEL with its parent Financial Technologies.
A final order confirming its draft order issued in October 2014 was passed by the Corporate Affairs Ministry on Friday.
This final order is significant as it is the first case of the government ordering merger of two private sector companies (under Section 396 of Companies Act 1956).
The final order came a day after a high-level meeting chaired by Economic Affairs Secretary Shaktikanta Das reviewed the steps taken to recover money in the Rs 5,574-crore payment crisis that erupted at NSEL -- part of Jignesh Shah-led FTIL group -- in late 2013.
FTIL disappointed
Reacting to the final order, Financial Technologies (India) Ltd (FTIL) said the final order is “highly disappointing” and it places the interest of trading clients higher than that of the shareholders of a listed company.
“Ministry of Corporate Affairs has also chosen to ignore the thousands of representations made by the shareholders, its creditors and hundreds of employees of FTIL and NSEL,” FTIL said in a statement soon after the final order was passed.
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