The proposed merger of commodities spot exchange NSEL with its parent FTIL got a shot in the arm yesterday with the Bombay High Court lifting the stay order it had passed last November and asking the government to pass the final order. The division bench directed the Corporate Affairs Ministry to proceed with the final order under the provision of the Companies Act and said it will look into the case after the final order was issued. The bench said the government will hear all the parties and their contentions within 30 days and pass an order within four weeks of the hearing. The bench also kept open the option for Financial Technologies India Limited (FTIL) to challenge any adverse order passed by the government.The court also said that the government's final order will be kept in abeyance after passing and would be subject to the clearance of the court.The direction came after the government's counsel sought revocation of status quo order, saying FTIL's decision to dispose of its assets had violated the status quo.Commodity market regulator Forward Markets Commission (FMC) had late last year proposed to merge NSEL with FTIL, as demanded by investors following the r5,600 crore rupee payment crisis at the exchange.The FMC move came after it felt that the workforce and financial strength of NSEL has been depleted and so it was financially and physically incapable of effecting any substantial recovery from the defaulting members.
News On AIR | February 5, 2015 8:59 AM
Bombay HC lifts stay to FTIL-NSEL merger