FTIL-NSEL Merger

• F I N A N C I A L T E C H N O L O G I E S ( I N D I A ) L I M ITED ( F T I L )

• N A T I O N A L S P O T E X C H A N G E ( N S E L )

• N S E L C R I S I S

• F I R S T M E R G E R O R D E R

• M R . V E N K A T C H A R Y ’ S V I E W O N M E R G E R

• F T I L E M P L O Y E E S

• C O N C L U S I O N

Agenda

Financial Technologies (India) Limited (FTIL)

FTIL is an Indian financial services company, formed in 1988

It is promoted by the Financial Technologies Group

The group offers technology IP (Intellectual Property) to create & trade on next-generation financial markets, across asset classes including equities, commodities, currencies & bonds among others

National Spot Exchange (NSEL)

NSEL is a Commodities Exchange in India, founded in 2005

NSEL is a company promoted by Financial Technologies India Ltd.

NSEL commenced its live trading operations in different commodities on, 15 October 2008

NSEL Crisis

NSEL Crisis is estimated to be a Rs. 5600 crore that came out to light after the National Spot Exchange failed to pay its investors in commodity pair contracts after 31 July 2013

NSEL has declared 22 members as ‘Defaulters’ on 22nd & 28th August 2013 and 22nd October 2013 as per Rule 41 of the Exchange Bye laws

So far, defaulters’ properties worth around Rs. 5,000 crore have been attached by the Economic Offences Wing (EOW) of Mumbai Police

First Merger Order

On 21 October 2014 the Ministry of Corporate affairs announced a draft order for merger of NSEL which is the subsidiary company with its holding company ,viz., FTIL

The government by announcing this merger has exercised its powers under Section 396 of the Companies Act,1956

Mr. Venkat Chary’s view on merger

FTIL Chairman Mr. Venkat Chary said “All Shareholders are entitled to object”

He said they can exercise their right of opposition to the forced amalgamation of NSEL with FTIL under section 396 of the Companies Act, 1956

FTIL- NSEL could come forward with a pragmatic solution

FTIL Employees

FTIL Employees and shareholders are not content & they raise their voice against forced merger, here is the video which demonstrates their difficulties

Conclusion

Government should focus on the money trail & bring to book the 24 defaulters of this scam

More than 60,000 FTIL shareholders have raised objections on draft merger

The final order was expected in the first week of April, but now its delayed as Bombay High Court accedes to the Ministry’s request for three more months to pass the final order

I M A G E S A R E F O R P R E S E N T A T I O N P U R P O S E O N L Y

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