More revelations have arisen in a short span! But the latest news round-up is - Four banks that have extended loans to Financial Technologies (FTIL) have appealed to the high court to allow them to oppose the Ministry of Corporate Affairs’ (MCA) order to merge NSEL with FTIL, the parent company.
Times may have been turbulent for many in the recent past - for myriad businesses and organisations, yet some may still survive, if they are allowed to, given their credentials, growth and their commitment to protect their shareholders, investors, employees and, of course, the economy’s growth, to which they contribute, directly and indirectly.
According to the news that featured in Business Standard on January 24, 2015, the banks have come forward, seeking court’s permission to intervene as opposition to the government’s merger order, and they are - Syndicate Bank, DBS Bank, Union Bank and Standard Chartered Bank. The plea was filed by them in December, 2014; they were asked to file a detailed reply by February 4, 2015, which happens to be the next date of hearing, by the high court.
The whole episode got flared up by the government’s order on the recommendation by the Forward Markets Commission (FMC) and the department of economic affairs. In the hearings, the outcome has been status quo thus far, as per the high court’s discretion, until it hears the arguments from both sides that are for and opposed to the merger order.
On occasions, FTIL has said that the idea is unsettling and uncalled-for, as the defaults of the subsidiary wing would be transferred to FTIL, which will have an adverse impact on it, specifically, affecting its shareholders’ interests and stakes. Also, several of the media vents and news agencies through their mouth pieces have voiced it out time and again, and it reverberates yet again.
Highhandedness of several will have only remnants from devastation to offer to people and future investors. Yet diligent, upright organisations will eke out a living. The only tenable elements would be the mettle to subsist, truthfulness to stand strong; indomitability and intent to protect numberless interests of shareholders, investors, employees and the economy at large.
It would, undeniably, be more unnerving if one had to imagine emasculation of a healthily burgeoning company, and the liabilities imposed on its investors that may have not invested for it. The tumbling impact of this would have steamrollers run on countless aspirations.