FTIL Considers ATOM, DGCX Stakes Sale; urges shareholders to oppose merger of FTIL-NSEL

Departing mobile transaction and payment gateway – ATOM, is being contemplated by FTIL; there have been indications from FTIL of this revelation. It intends to sell 95% of the stake of the subsidiary of FTIL. It has also pointed out its intentions of divesting from Bourse Africa and Bahrain Financial Exchange, apart from its 27.3% stake in Dubai Gold and Commodity, according to the news piece featured in Business Standard on 26^th February, 2015.

Many in the business world may have been slow on the uptake, then FTIL came into being with innovative ideas and solutions, and ATOM was one of them. Thus the exchange business and its stakeholders got a perpetual whirl to enjoy the comfort of easy transactions.

A letter from Mr. Venkat Chary to 68000 FTIL shareholders indicated all of those, besides his appeal to them to oppose the merger of NSEL-FTIL merger as per the suggestions of Ministry of Corporate Affairs.

“as it is against the interest of FTIL shareholders and not legal, as NSEL is a limited liability company”.

The content of the letter indicates that the government may have sought this as recourse to compensate investors; but on the other hand, as per the content of the letter, Rs.2, 153 crore has been released by FTIL through sale of various assets and the stake sale processes. Thus he urges, in his letter, to the shareholders, to oppose the proposed merger, saying, “as it is against the interest of FTIL shareholders and not legal, as NSEL is a limited liability company.”

On the occasion, FTIL had also listed the cash and asset positions of the company in detail. More than might, rectitude and intents to take care of shareholders, employees and scrupulously thinking about limited liability as sacrosanct is believed to make right. Apart from FTIL, significant minority shareholders of FTIL viz. Bharat and Ravi Sheth, and earlier, four banks – DBS Bank, Union Bank, Standard Chartered Bank and Syndicate Bank, had opposed the merger.

It would be to the business world’s chagrin, if radical and imposing demeanour is adopted. At the foreground, going by several views and news in the recent past by numerous media mouthpieces, it visibly emerges that merger will, most definitely, enervate the sanctity of business functioning and limited liability tradition terribly. The gravitas of the situation needs to be given due attention, as it is supposed to impact many aspirations, careers and growth of the economy at large.

(Source - http://www.business-standard.com/article/companies/ftil-in-talks-to-sell-stake-in-atom-dgcx-115022600748_1.html) 

Jignesh Shah paves way - twirling up gen-next dimensions for FTIL

Transferring action to manage the state of affairs at FTIL, Jignesh Shah will not be holding any executive or managerial position in the company. A series of events did the rounds in the company lately, with the induction of new members in FTIL board last week and now the elaborate change of management that took place on 20^th November, 2014.

Overlaying a purposeful structure with constructive intents, making way for new entrants into the Board of FTIL, Jignesh Shah has charted the next phase of growth for the company. The relay took place when he handed over the cudgel of responsibilities and management of FTIL to various individuals of repute and sublime credentials.

Jignesh Shah was invited to be Chairman – Emeritus and Mentor of FTIL, and inspire entrepreneurship, whilst Prashant Desai was handed over a bigger responsibility having been appointed as MD-CEO of FTIL by the board. He is also expected to oversee the execution of the founder’s vision of FT 3.0.

The expansion of the board with 3 non-executive directors was also announced on the occasion i.e. Ms. Nisha Dutt , Mr. Sunil Shah and Mr. Miten Mehta. Ms. Nisha Dutt is a Silicon Valley veteran who holds M.S. and MBA degrees from Oklahoma State University and Ohio University, having over a decade’s consulting and technology experience in over a dozen countries. Mr. Sunil Shah is an IIM - A alumnus and founder of Gujarat Innovation Society and Mr. Miten Mehta, qualified from Kellogg’s, has twenty years of extensive experience of Silicon Valley and US.

Additionally, two more executive directors were included in the board - Mr. Jigish Sonagra and and Mr. Rajendra Mehta. Mr. Jigish Sonagra holds a business management degree and is qualified as Chartered Accountant and CISA Auditor with 14 years of rich experience in exchange technology and related products. He will be the Director - New Ventures of the Company.

Mr. Rajendra Mehta is a qualified Chartered Accountant with over 20 years of experience in banking & financial sector, and is ex-COO of CLSA. Mr. Rajendra Mehta will be Director - Member Technologies of the Company. Further, Mr. Manjay Shah and Mr. Dewang Neralla will exit from the Board of the Company. Mr. Dewang Neralla will become MD & CEO of Atom Technologies and Mr. Manjay Shah will become MD & CEO of Tickerplant.

Interestingly, it is a reconstituted board with 12 members and 5 non-executive directors and independent directors; 4 executive directors and 3 non-executive directors. The board already comprises IAS (Retd.) officers, chartered accountants, lawyers and successful entrepreneurs with start-up and corporate experience along with two directors with international exposure, making it among one of the most independent and professional board-run companies in corporate India, and is all geared up to avail the existing and new opportunities presented by the digital era.

Also, the ‘JS Digital Innovative Award’ established to honour the contribution of FTIL’s founder Jignesh Shah was unanimously approved on the occasion. The growth trajectory of FTIL has witnessed myriad dimensions and diverse paradigm technology innovation and implementation since inception, having been founded by Jignesh Shah and two of his colleagues. Several exchanges and trading terminals were set up, with a consummate distribution network, linking India with Middle East, Africa and South East Asia. Exemplarily, they were known for recreating new-age digital silk and spice routes.

More transcendent accomplishments were setting up of MCX, MCX-SX and IEX in India, SMX in Singapore, DGCX in Dubai and Bourse Africa in Mauritius, by FTIL with his vision, under Jignesh Shah’s leadership. They are among the most globally respected and recognised institutions in their respective market segments and geographies.

The announcement came after the board expansion, with induction of Berjis Desai and Anil Singhvi into the board last week, along with the founder’s vision projection for Digital India @2025 as part of FT 3.0 Made in India technology to build and power India’s own equivalent of Amazon, Google, Alibaba and Baidu et al over the next 10 years.