At the
foreground, responses and objections, particularly, against the merger, zoom
past everything else currently. As the proposed idea of amalgamation of NSEL
with FTIL sprung up lately, support for FTIL, against the government’s decision
to do so has been scampering in boundless and humongous volumes across the
social media. Albeit the severity ratcheted enormously, nothing obviated the views,
ideas and opinions from deluging the social media spouts indiscriminately.
Pained by
extreme throes, shareholders have inundated several media platforms with their
overwhelming responses against the proposed merger by the Ministry of Corporate
Affairs (MCA). Definitely not a rumpus, but a disciplined swarm of views of
shareholders, creditors and employees flocked the board, objecting to the
proposed amalgamation.
Subsequent to
FTIL management’s urge to vote on the government’s proposal - as per the records,
close to 99.55% of the shareholders of the company voiced against the idea of
merger, which translates into 18,700 shareholders; these shareholders also
represent 79.5% of the equity capital in the company. Supplementing their
votes, were the votes of the company’s creditors, 1000 employees and the board
of directors, according to the news reported by Business Standard on March 10,
2015.
“The merger proposal is detrimental to the interest of 63,000
shareholders and over 1,000 employees of FTIL. Nearly 80 per cent of our
shareholding and a majority of other stake holders have clearly indicated they
are against the proposed amalgamation in the name of public interest of trading
clients of NSEL...….”
It was also
stated by FTIL that the fallout of votes were computed; the shareholders
emailed their responses to the MCA, marking a copy to FTIL, coinciding with the
final date of the voting deadline stipulated by the high court; the responses
were verified by competent bodies viz. KDS & Co. and an independent
auditor, the report further stated.
Spread across
26 states, 5 union territories and 12 nations, the 18,700 shareholders took the
baton of responsibility and initiative of voicing their views and responses, in
order to make them heard by the law dispensing authorities and judiciary, at
large. The exercise of monitoring was, supposedly, to prevent the responses from
frittering away from people’s attention and the media, as they may be
substantially crucial in making the authorities take cognizance of FTIL shareholders’,
creditors’ and employees’ interests and concerns at stake.
It was also
observed that the suggestions, concerns and objections on the draft order of
the proposed merger inexorably persisted and continued to flow in, besides the
ones that couldn’t get through due to mailbox getting filled up by the flooding
mails. As per the company’s record, roughly 12,500 e-mails bounced back; thus
the hard copies of those were sent to the MCA, in the form of a CD (compact
disc), ensuring no response, email or objection is left unnoticed, unread and
unheeded.
On the
occasion, Venkat Chary, Chairman, FTIL, reacted, saying, “The merger proposal is detrimental to the interest of 63,000
shareholders and over 1,000 employees of FTIL. Nearly 80 per cent of our
shareholding and a majority of other stake holders have clearly indicated they
are against the proposed amalgamation in the name of public interest of trading
clients of NSEL. While the recent report clearly questions the genuineness of
13,000 numbers of trading clients coupled with entitlement thereof, whereas the
approximate 80% shareholding are real investors with complete know your client
(KYC) bonafide owners of the Company who have objected to the amalgamation and
have expressed solidarity and faith in the Company and its management.”
In all fair-mindedness,
with no prejudice whatsoever, the spate of responses is believed to impact the
happenings positively; though not eerily dishevel the process, but make the
authorities believe in FTIL’s healthy existence, and re-emphasise the phenomenon
and sanctity of “Limited Liability” beyond anything that may be misperceived
and misarticulated to be irking and slovenly, in the whole episode.
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