In a breather for Financial Technologies (India) Ltd, the Madras High Court on Friday stayed the June 30 Company Law Board (CLB) order that restrained the company from selling its assets and investments.

The CLB’s order stands suspended except as regards the company’s immovable assets, an FTIL spokesperson confirmed. “We welcome the decision of the Madras High Court and have full faith and trust in the judicial system,” FTIL said in a statement. Now, FTIL can conduct its day-to-day operations seamlessly.

The Madras High Court decision could pave the way for FTIL to sell its stakes in several bourses including Indian Energy Exchange (IEX), Dubai Gold and Commodity Exchange, Bahrain Financial Exchange and Bourse Africa, say corporate observers.

On June 30, the CLB had, while hearing the Corporate Affairs Ministry’s (MCA) petition seeking supersession of the FTIL board, directed the company “not to sell/alienate or create third party rights in the assets and investments” of the company until further orders.

The Madras High Court’s decision is the third consecutive judicial ruling in favour of FTIL.

The earlier two related to the Bombay High Court allowing FTIL to divest its shares in IEX and the Supreme Court staying an order of the Central Electricity Regulatory Commission that required FTIL to transfer its holding in IEX to a trust demat account.

The MCA had earlier this year filed a petition before the CLB asking the quasi-judicial body to allow the Centre to appoint its own nominees in the place of existing directors. This was sought to “prevent further acts of fraud, misfeasance and breach of trust” by the existing directors.

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