Can FTIL’s Proposed Solution Crack NSEL Logjam?

Often the solution is easy and lies before our eyes, and yet we do not see it. We move mountains and cross oceans, and yet all the while the remedy was lying in plain sight in our own courtyard.

This is what is happening with the  NSEL issue. If all the stakeholders—FTIL, the trading clients, brokers, and the government— join hands, the payment default crisis at NSEL can be speedily resolved. In fact, FTIL’s proposed solution as outlined to the government can heal the wounds of all the stakeholders inflicted by the defaulters on NSEL’s trading platform.

In a manner of speaking, the solution would entail that the pain is evenly distributed. The money trail to the last paisa has been found with the defaulters and they should be held accountable for their actions. So far, without any reason, it is only FTIL that has borne the brunt of the crisis by facing various proceedings which are sub-judice.

The privity of contract of the trading clients is with the brokers. It is brokers which have made multi-times money while transacting on the exchange. It is therefore important that they participate in the settlement process to enable payment to trading clients.

According to Business Standard, published on March 20, Prashant Desai, the Managing Director & CEO of FTIL, said, “FTIL proposes to pay Rs. 500 crore, of which Rs. 180 crore was already paid in 2013, with the brokers contributing equally”.  The proposed solution is without prejudice and is subjected to FTIL shareholder and board approval.

If all the parties concerned agree to implement it with government help, all trading clients with exposure of up to Rs. 1 crore, which are 11, 954 in number, will get at least half their dues as reported in the Business Standard article. The PSUs will receive 100% of their claims.  

Mr. Venkat Chary, the chairman of the FTIL, too had reiterated that “around 94% of trading clients’ claims can be immediately addressed in part or full measure by Rs.1, 000 crore payment.” 

Eleven defaulters have admitted liability of Rs 2,000 crore and high court has issued decrees for Rs 513 crore.

If all parties contribute and come forward to resolve the NSEL issue, then it will be one less problem for the government to solve.  

Overwhelming support for FTIL - Shareholders object to merger strongly

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.

(Source - http://www.business-standard.com/article/markets/majority-of-ftil-shareholders-objects-to-nsels-amalgamation-with-it-115031000984_1.html) 

FTIL puts firm foot down - FTIL challenges MCA’s petition firmly; Court stays MCA’s petition till March 11 which has been further extended till March 16

At the outset, embattled state of affairs can be dispelled with rectitude and mettle. FTIL toughly rebutted the Ministry of Corporate Affairs’ petition seeking supersession of the present board of directors of FTIL. Also, the Company Law Board (CLB) hearing that was to take place on 3^rd March, 2015, was stayed a day before, stating that it would be heard by the court on 4^th March, 2015, and no action will be initiated until then, according to the news reported by Business Standard on 2^nd March, 2015.

Further developments ensued, when the hearing took place before the court on 4^th March, 2015; the court adjourned the hearing till 11^th March, 2015 which has been further extended till March 16. In other words, the hearing for the petition filed by FTIL to stop the elimination of its board of directors, making FMC a party, will be heard on 16^th March, 2015. 

On 1^st March, 2015, Sunday, in the FT board meeting, a resolution was passed to oppose MCA’s petition to CLB seeking supersession of FTIL board strongly, terming it to be a clear attempt by MCA to render ineffective approach, and actually overthrow FTIL’s challenge and opposition to the proposed amalgamation of NSEL with FTIL.

“After considering on the matter and also considering that the issue is totally prejudice, mala-fide and not in the interest of FTIL its Board, its employees, its shareholders and other stake holders, we have decided to contest all issues raised by Union Of India vigorously as per the law of the land.”

Also, in the meeting, it was made clear that the material act of the new board since their joining has been its resolve to oppose the draft order and the proposed forced amalgamation by MCA, alluding such allegations of ‘mismanagement’ to be seemingly mala-fide and deserve to be challenged.

On the occasion, Mr.Venkat Chary, acting Chairman, FTIL, said, “After considering on the matter and also considering that the issue is totally prejudice, mala-fide and not in the interest of FTIL its Board, its employees, its shareholders and other stake holders, we have decided to contest all issues raised by Union Of India vigorously as per the law of the land.” He further added that as the Board is competent enough to deal with the current situation, the company will file a petition before the Honourable Bombay High Court or the Company Law Board or at any other appropriate forum as it deems fit.

In the meeting, It was further resolved that it is inequitable to seek replacement of the entire board since four legal suits are sub judice, which includes the representative suit, fit and proper and writ petition filed opposing amalgamation of NSEL with FTIL, as per the FTIL’s press note published on BSE website on 2^nd March, 2015.

FT also added in their press note that the board strongly believes that it has acted prudently in the larger interest of over 63000 shareholders.

It was further stated by the court that FTIL and its lenders are yet to file a reply to the MCA by 4^th March, 2015, stating why the NSEL-FTIL merger should not take place. FT has endeavoured to ply forward with grit to whittle out a trajectory, to legitimately protect the interests of all the shareholders, employees and other stakeholders.

Now, as per the latest developments that took place on 4^th March, 2015, the stay is retained by the court till 11^th March, 2015; the objective is to restrain the government, and seek reply from the ministry of corporate affairs.

 (Source 1 – 1. http://www.business-standard.com/article/markets/ftil-opposes-mca-s-petition-to-clb-for-removal-of-ftil-board-in-court-115030200113_1.html

2.  http://www.bseindia.com/xml-data/corpfiling/AttachLive/Financial_Technologies_(India)_Ltd_020315.pdf

3. http://www.business-standard.com/article/companies/hc-extends-stay-on-ftil-board-s-supersession-for-a-week-115030400890_1.html) 

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) 

Is the government targeting FTIL under Sections 397, 398 read with Section 388 (B), 388 (C), 401, 402, 403, 406 and 408 of the Companies Act, 1956, to negate the company’s challenge to Section 396?

And so the FTIL saga continues. In the latest edition, another salvo was fired by the government against FTIL. In the most recent attempt to annihilate FTIL’s existence as an independent business enterprise, the Ministry of Corporate Affairs (MCA) in a petition to Company Law Board (CLB) had sought to supersede Financial Technologies (India) Ltd. (FTIL)’s current board under Sections 397, 398 read with Section 388 (B) and 388 (C) 401, 402, 403, 406 and 408.

No doubt the government has immense power to rein in errant and unlawful actions of companies. FTIL, an independent company, cannot and should not be punished when all the matters are sub-judice.

In any case, from all angles, the decision of MCA to file an instant company petition on March 3 with CLB is nothing short of browbeating the company into submission. More so as it comes just three days before the time given to FTIL to file its objections to the draft amalgamation of NSEL with FTIL on grounds of “public interest” in which 63,000 shareholders and other stakeholders’ interests were not considered at all.  

The matter also has legal ramification for all companies incorporated and conducting business in the country. The central government is attempting to render FTIL’s challenge to Section 396 nugatory by attempting to remove the existing Board of FTIL.

Was MCA’s petition an attempt to stop FTIL from filing its objections to the draft merger order as granted by the Hon’ble Bombay High Court on February 4? 

The main arguments used by MCA in its petition to CLB are wrong and should not be used to overturn the legally elected Board of Directors of FTIL.

The MCA says FTIL’s current Board opposes the amalgamation of National Spot Exchange (NSEL) with FTIL.

The reality:

For the current Board, its fiduciary responsibility toward the 63,000 shareholders and other stakeholders of the company, including employees, is of paramount importance. In any civilized country governed by the covenants of business law, this is the practice.

Also, the use of “essential public interest” as a ground by MCA to propose the amalgamation of NSEL with FTIL is sub-judice.

The MCA further says that the current Board of Directors facilitated the sale of MCX at a loss of Rs. 290 crore and should be overthrown.

The reality:  

.As for sale of FTIL’s stake in MCX, the divestment was conducted in an independent and transparent manner. J M Finance was appointed as the financial advisor for the stake sale in March 2014. Interested companies were invited to bid. Among the reputed companies that showed interest in the stake sale were Reliance Capital, Chicago Mercantile Exchange (CME), Tata Capital, Kotak, Warburg Pincus and London Metal Exchange.

There were numerous letters from MCX insisting that FTIL divest its shares in a short time. Those letters stated that the regulator, i.e., Forward Markets Commission (FMC) would not permit launch of any new contracts by MCX unless there is compliance with the divestment.

It was FMC, through its various directives, including the not “fit and proper” person to continue to hold 2% or more paid-up capital in MCX order that forced FTIL to exit MCX and the same was confirmed by MCA in its Petition.

The interests of the shareholders and other stakeholders of FTIL were of paramount importance for the Board of Directors, which acted in a transparent manner to derive the appropriate value for the divestment in the relevant market and regulatory conditions.  

It is unlawful and wrong of MCA to supersede the Board of Directors of FTIL. It is also unprecedented in the history of corporate India and will set a wrong example for future business entrepreneurs and lawmakers. 

Status Quo on Merger vacated – expected to imperil several stakes in one go

Who will reverse the irreversible after the damage is done? On 4 February, 2015, Bombay High Court vacated the status quo in the NSEL-FTIL merger order by the Ministry of Corporate Affairs (MCA). The court had ordered status quo in the matter on 27 November, 2014. Now, it has vacated its order allowing the government to pass a final order, after hearing from all stakeholders and parties viz. NSEL, FTIL, shareholders, creditors and others affected and related in the case. The decision was held by the two judge bench consisting of Justice V M Kanade and Justice Revati Mohite Dere.

The government was ordered to proceed with the hearings within 4 weeks and issue the final order within 4 weeks from then on, reported by Business Standard on February 4, 2015. As per the news reported, the order will become effective in two weeks from this time.

"In case of adverse order, however, the petitioner (FTIL in this case) may come back to the court. The final order would be kept in abeyance till the hearing continues in this court. The government's final order will be subject to the court's approval," the court said.

The government was perhaps in a hurry for action, thus acted in a breakneck speed on FMC’s recommendation of merger, on 21 October, 2014; it was a view and voice of myriad from the business world besides the media vents. It was time and again decried against by many, in vain. It was also denounced saying though the merger order was as per section 396 of the Companies Act, 1956, but it is usually done in the public interest, which was missing in this case.

On the occasion, incorporation of legal validity of the government’s order was urged for by Abhishek Manu Singhvi, NSEL’s senior counsel; he further questioned if it was in government’s jurisdiction to pass the merger order.

He argued saying, "Under Section 396 of the Companies Act, two public sector companies can be merged only in public interest provided the government is prima facie satisfied that the amalgamation will benefit shareholders and all concerned of the two companies which is absent in this case. While FTIL is a business oriented company with 63,000 shareholders with it, NSEL is a separate entity with no business and only liabilities. No rules in the world suggest merger of two legal entities with varied business interest." (As per the news report by Business Standard, February 4, 2015)

It was alleged by him that the government’s issued draft order, seemingly said to be the final order, was to protect the interest of 781 high net-worth investors (HNIs), whose total investments amount to 66% of the total defaulted sum of Rs. 5600 crore.

"The proposed merger order, if any, would be irreversible and hence would open a floodgate of litigations as a number of litigations of similar nature are pending before various courts."

Supplementing it, Janak Dwarkadas, another FTIL counsel said, “.. the government's draft order takes care of just 781 traders and completely neglects 63000 shareholders and 1500 employees of FTIL." (As per the news report by Business Standard, February 4, 2015)

Further, government’s counsel, Ranjit Kumar’s allegation that saving ‘Odin’ as FTIL’s core business and the sale of assets like Bourse Africa and Bahrain was in violation of the status quo order was rejected by the court.

On this, a Mumbai-based corporate lawyer reacted saying, "The proposed merger order, if any, would be irreversible and hence would open a floodgate of litigations as a number of litigations of similar nature are pending before various courts." (As per the news report by Business Standard, February 4, 2015)

(Source - http://www.business-standard.com/article/companies/bombay-hc-vacates-status-quo-order-on-ftil-nsel-merger-115020401320_1.html) 

Banks compete against FTIL-NSEL merger order

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.

(Source - http://www.business-standard.com/article/finance/four-banks-oppose-nsel-ftil-merger-in-high-court-115012400048_1.html) 

Extended to yet ‘Next’ – NSEL - FTIL merger proceeds will stay as is where is - till Feb 4.

Status quo continues. Bombay HC has extended the stay on government’s NSEL-FTIL merger order till 4 February, 2015.

Perhaps new hopes elevated; the position is still as it is where it was; if it will mark a sublime beginning of the conclusion, is the question. Contrary to the unanimous views that emanated from a vast majority of the business fraternity and media spigots, the government has been steadfast in calling for an unwarranted merger of NSEL with FTIL, on 23 October, 2014. This caused a maelstrom of happenings all over, quaking business moorings and economy at large.

As scheduled, the hearing took place on 22 December, 2014, before Justice VM Kanade. The NSEL Investors Forum (NIF) was issued a notice for contempt of court; as the said forum had made allegations against the said Justice that he could be biased as his son had appeared for a nominee director of PD Agroprocessors, who is one of the defaulters in NSEL.

Who’s to judge whose integrity? Has faith in the judiciary among people dwindled, or is it just prejudicing to doubt eminence? But to affirm that justice is alive and omnipotent, the faith of both Forward Markets Commission’s (FMC) and Ministry of Corporate Affair’s (MCA) counsels in the judge was evident and audible in the court. They confirmed their acquiescence to it, reflecting their conviction and trust when they were asked if they had any objection, by the judge offering to recuse himself, if they had any.

On previous hearings, FTIL’s counsel Abhishek Manu Singhvi contended saying that the draft order for the amalgamation was issued under section 396 of the Companies Act and extended his argument stating that the merger needs to be approved by the boards of both the companies in question, along with the approval of ROC and Official Liquidator’s (OL) nod.

With hindsight, it was a recommendation by FMC and the department of economic affairs that triggered a shockwave which was followed by the government’s draft order for merger. The aim maybe to haste the merger, but it is, as debated all over, bound to dilapidate the scene adversely, and it is inimical for the economy and entrepreneurial growth at large. FTIL’s argument has been that the uncalled-for amalgamation will unavoidably transfer the default of NSEL to FTIL.

The fallout will prove to be "wet blanket" resulting in haplessness, plaguing the scene with waning interest among existing stakeholders, employees of the parent company, besides dismaying new investors across-the-board.  

Deal culminated – FTIL clinches agreement with sale of 1.65 shares to Rakesh Jhunjhunwala

Further developments in FTIL’s shares sale process! A transaction that was initiated last month has been finally clinched; Further 1.65 lac shares have been sold by FTIL to Rakesh Jhujhunwala for Rs. 2.47 lac in MCX-SX stock exchange. This is believed to have completed the departing process. This was pursuant to the agreement signed by FTIL towards selling its whole 5% stake, including 2.7 crore equity shares and 56,24,60,000 warrants for Rs. 88.41 crore.

This was also revision to the original agreement, in response to the clarification requirement of BSE last week, particularly, on the stake sale that took place in November, 2014.  

Also, there were separate warrant purchase agreements that were entered into, by FTIL, with Edelweiss Commodities Services, Viral Parikh, Trust Investments, Derive Investments, Nemish Shah, Dhanesh Sumatilal Shah, Kalpraj Dharamshi, Renuka Shah, Uday Shah, Madhuri Kela, Madhu Vadera Jayakumar and Capital & Research.

As per the clarification to BSE, an unsupported error in communication, on 25 November, 2014, appeared stating the company exited entirely from MCX-SX. Thus making amends, FTIL clarified that now the whole culmination has taken place with this further sale of shares to Jhunjhunwala. The excerpts from FTIL’s clarification stated, "...nominal 165,000 equity shares were missed out due to decimal calculation which was subsequently sold to Rakesh Jhunjhunwala by entering into an amendment agreement completing the sale of total share of 2,71,65,000 on the basis of the present capital of MCX-SX.”

Thus, with this deal, FTIL has totally exited from MCX-SX. 

(Source - http://economictimes.indiatimes.com/markets/stocks/news/financial-technologies-india-ltd-sells-1-65-lakh-shares-of-mcx-sx-to-rakesh-jhunjhunwala/articleshow/45415330.cms

http://www.business-standard.com/article/markets/ftil-sells-additional-1-65-lakh-mcx-sx-shares-to-jhunjhunwala-114120800243_1.html) 

Proceeds pushed for next – Bombay HC adjourns NSEL-FTIL merger hearing

FTIL’s quest for pivots to save numerous stakes has been a determined effort. The Bombay Court, on 27 November, 2014, adjourned the NSEL-FTIL merger issue till 22 December, 2014. The merger draft order came as a stinker from the Ministry of Corporate Affairs (MCA) on 22^nd October, 2014, which was swilled by many from the business community and several of the media mouth pieces and vents ever since, calling it unwarranted and uncalled for. The swarming views were - the pragmatic shortcomings from the amalgamation will wear away the fundamentals of limited liability; it may also affect the corporate business moorings adversely, apart from discouraging new and enthusiastic investors and traders. In entirety, it may be detrimental to the economy as a whole.  

Apparently, the adjournment, if construed specifically, means the hearing has been deferred till 22 December, 2014; momentarily, it can be seen as the idea is devoid of enough reasoning, as the basis of Article 396 and ‘public interest’ nomenclature can’t be held to be entirely realising. Thus no parity can be drawn in this case. Also, as per a former argument by Abhishek Manu Singhvi, counsel for FTIL, at Supreme Court, section 396 of the Companies Act, 1956, has been exercised, with a thoroughgoing approach, maximum four times, on government companies – that too, with their consent. While in this case, the rummage for expedited merger implementation is on two private companies; needless to say, without their consent, which is unprecedented. Implicitly, the motive seems to be ‘hurried implementation’, which, as per several views and reviews, will emasculate the sanctity of limited liability, affecting the interests of stakeholders, viz. employees and shareholders of FTIL, largely. Therefore, it hasn’t been taken in good taste, for the most part.

It’s been a dour demeanour of FTIL; at first, challenging government’s order for merger of NSEL with FTIL. Then tenaciously striding ahead to protect the sanctity of ‘limited liability.’ Earlier, FTIL had moved Bombay HC against the government’s order. Vehemently put by FTIL, against several arguments – the matter is currently sub-judice before the Bombay HC; thus liability through piercing the corporate veil does not arise.

Myriad voices and arguments against the order were put forward by the business community as well as the media fraternity, to galvanise the matter to reach the authoritative and law dispensing ears. Their objective, seemingly, was to converge fortitudes of the stakeholders, future investors and entrepreneurs at large.

As per the excerpts, mentioned in quotes in the news edit of Economic Times, on 13^th Nov., 2014, reads – “The issue of lifting the corporate veil is, thus, already sub-judice before this court. The petitioners crave leave to refer to and rely upon the papers and proceedings, including various interlocutory applications and orders passed by this Hon-'ble Court, in the said suits."

Now, FTIL is all the more determined to protect the interests of the corporate India, along with those of 60,000 shareholders and 1000 employees. On 21^st October, 2014, questions have been raised on the Ministry Corporate Affairs’ impugned order of enforced amalgamation of the crisis-hit NSEL with FTIL. FTIL solicited in the petition that the government’s order was “bad in law and needs to be quashed.”

Supreme Court dismisses SLP against Jignesh Shah’s bail

Pursuits defanged; efforts for special leave petition against Jignesh Shah’s bail order stymied

The scenes seem more ratcheted with the goings-on. Getting in the act, the efforts made by several trading clients of the crisis-hit NSEL was to reap self-desired fruition - by challenging the bail granted to Jignesh Shah, the promoter of FTIL by the Bombay high court, on 22^nd August, 2014, in the Supreme Court. Earlier this year, in August, Justice Abhay Thipsay of Bombay HC had granted bail to Jignesh Shah. 

Ultimately, the Supreme Court quashed the plea of the trading clients on Monday, 17^th November, 2014. What’s more; the state of Maharashtra wasn’t even issued notices by the bench that comprised Justice Pinaki Chandra Ghose and R K Agarwal.

To peal the overhang of the past happenings, trading clients exercised expedience. Discernibly, the appeal was in vain, when the SC quashed their special leave petition on Monday. It was flatly dismissed with no relief grant to them. Retrospectively, Justice Thipsay granted bail to Jignesh Shah, additionally stating that his custody was not necessary anymore for further investigation.

The HC then, in its judgement, pronounced saying, “Though termed as a "Rs 5000 crore NSEL scam", it is not that monies were received by NSEL, but they have gone from one bogus trader (investor) to another bogus trader (borrower).”

On another occasion, hearing on Forward Markets Commission’s mid-December order, last year, asserting that FTIL was ‘not fit and proper’ to hold shares in MCX or any other entity was before Judge S J Vazidar, last week.

On the occasion, Abhishek Manu Singhvi, FTIL’s counsel, said that the FMC’s order was implemented by the SEBI (Securities Exchange Bureau and Central Electricity Regulatory Commission (CERC) and constrained the company to go for a harried sale of its stakes in IEX, MCX and MCX-SX, which adversely impacted the companies’ valuation, entailing FTIL an enormous loss of over Rs. 1000 crore. In other words, the exits were, in a way, enforced ones, making the company face the brunt of financial damages.

“The FMC order was also being used by the government to forcibly merge the crisis-struck National Spot Exchange Limited (NSEL) with FTIL.”

FTIL’s argument was that the overall exit and sale of stakes have been ominously unsavoury; firstly, a loss of Rs. 291 crore in MCX; then Rs.250 crore lost in IEX and Rs.280 crore lost in the sale of MCX-SX stake. Furthermore, losses of Rs.11 crore from stake in Bourse Africa and Bahrain Financial Exchange incurred by the company steamrolled the state of affairs.

Counsel Singhvi’s view is – “the FMC order was also being used by the government to forcibly merge the crisis-struck National Spot Exchange (NSEL) with FTIL.”

FTIL was steadfast in filing a Writ Petition in the Bombay High Court against the government’s order to amalgamate NSEL with FTIL.

Also, the news featuring on Business Standard on 13^th Nov. 2014, reads, “FTIL also argued the fit and proper order did not specify the penalty for FTIL. This came six months later, forcing them to exit MCX at a loss.”

Unjust demeanour is evident; prejudices of sorts supersede the course of law, leaving mere footprints of agony for the present and future investors. It’s for us to muse earnestly if all of this is benign or malignant to the health of the economy at large. 

FTIL’s most recent accord with Jhunjhunwala, exiting MCX-SX

Crossing the thresholds, departing MCX-SX, FTIL entered a pact with Rakesh Jhujhunwala, selling its stake and warrants in stocks bourse to the latter.

Expressively, a share and warrant purchase agreement was entered into,  with Dr. Rakesh Jhunjhunwala; whilst separate warrant purchase agreements were moved in by FTIL, with M/s. Edelweiss Financial Services Limited, M/s. Trust Investment Advisors Pvt. Ltd. Ms. Viral A. Parikh, M/s. Nemish S. Shah H.U.F., M/s. Derive Investments, Mr. Kalpraj Dharamshi, Mr. Dhanesh Sumatilal Shah, Mr. Uday Shah, Ms. Madhuri Kela, Ms. Renuka Shah, M/s. SKS Capital & Research Pvt. Ltd. and Ms. Madhu Vadera Jayakumar for sale of its 100% stake in MCX-SX comprising 2,70,00,000 equity shares and 56,24,60,000 warrants for an aggregate consideration of Rs. 88.419 crore.

Rakesh jhunjhunwala, a billionaire investor, had earlier purchased stock of MCX - close to 2%, earlier this year, now purchased stock of MCX-SX, thus enabling FTIL to exit MCX-SX entirely. FTIL divested all of MCX-SX stock, which took place on 26 November, 2014. 

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.

Mr Jignesh Shah hands over the baton of #FTIL to Next Gen FTian to lead FT 3.0

 

Link- http://bit.ly/1z0Syo0

FTIL spurs against government merger order in HC

Amidst the attempts to entrench an off beam precedent by calling for NSEL-FTIL merger; whilst myriad media vents calling it untenable, there’s barely a recourse to save the sanctity of limited liability. Also, the hoot and holler of the business community against the merger order has gone unheeded.

Fending off the unwarranted blitzkrieg is perhaps the panacea to subdue the tempest, thus FTIL moved the Bombay HC for reprieve.

Several actions were intrepid and radical, resonating impulse activism. Distraughtly, a recommendation of the NSEL-FTIL merger by Forward Markets Commission (FMC) led to a draft order by the government. Not limiting to that, the government also indicated replication of actions taken against Satyam on FTIL; in other words, a complete take-over of the management, revamping the board. Every debate, redact and views by the media outlets across-the-board stated that government seems to be raring to impose actions on FTIL. Every now and then, it was stated by most of them, including FTIL that it will ‘defeat and destroy’ the fundamental edifice of limited liability and independent corporate personality in company law, but in vain.

Therefore, FTIL opted for legal resort; thus moved the court, to challenge the order. A petition filed by FTIL in the Bombay High Court against FMC, the commodity futures market and the government, raises crucial issues. Some of them happen to be, as stated in The Economic Times news report on12th Nov. 2014 - “the merger will destroy and defeat the fundamental edifice of limited liability and independent corporate personality in company law.” Secondly, “it will open the floodgates for vested interests for seeking such forced mergers of subsidiaries with their parent companies or other entities whenever there is a problem at the subsidiary level. Finally, “The company has also prayed, among others, that the court prohibit the government and its servants, agents, officers and subordinates from superseding, substituting or otherwise howsoever changing the management of FTIL.”

FTIL is equipoised to pursue the matter, propounding the issues strongly against the government draft order, based on FMC’s recommendations of amalgamation of NSEL with FTIL, under Section 396 of Companies Act 1956. The section is a provision to empower central government for mergers or amalgamation of companies in public interest.

The petition has been filed to challenge the constitutional cogency of Section 396 of Companies Act. The bone of contention is while the edict is being construed, the High Court should interpret that the provisions of the said statute, in order to confirm the same, to be constitutionally legal and valid. Further the petition contends that enactment of Section 396 of the Act was to make available precisely little exception pared out for adherence to the provisions of Section 394 and 395 of the Act – as these put down extensive provisions pertaining to the revamp or merger of companies, along with the supplementary components.

Vision of Digital India@2025 … In Dreams Begin Responsibilities

Your dream is just a starting point. With the dream begins your responsibility to go forth and make something so great that it will change the lives of other people. The comfort you enjoy is the heritage given to you by previous generations; and now accept it as your obligation to do something for the posterity.

FTIL’s management team has resolved to execute on its founders’ vision for ‘Digital India @ 2025’. With the thrust upon “Made in India” technology, FTIL plans to build and power new generation digital enterprises equivalent to global IT behemoths. Powered by indigenous “Made in India” technology by FTIL, its management team is confident of creating technology solutions which will be India’s own Amazon, Google, Facebook, Twitter, Ali Baba and Baidu over next 10 years that can make India a technology hub.

These new Digital Disruptors will be the bellwether of inclusive development and growth besides creating a domino effect in the ecosystem that will be breeding ground to more new entrepreneurs, start-ups and job creation and will become the showcase of Digital India by 2025 by FT 3.0.

FT 3.0 is the transformation of FTIL into becoming the de facto 'powered by’ technology partner of choice to create and develop ecosystem of at least 100 new digital giants from India in 10 key sectors such as Retail, Education, Healthcare, Agriculture, Environment, Infrastructure and Space among others over the next 10 years by 2025. The Company is in the process of appointing an Industry Advisory Board and a leading Consulting firm to help it plan and execute the transformation process in to FT 3.0 and its Founders Vision of Digital India @ 2025.

FTIL’s technology, scale and execution capabilities can significantly contribute in creating and powering at least 100 new digital leaders in ten key sectors over next ten years, feels Mr. Jignesh Shah, Founder & MD of FTIL.

We are undoubtedly in an age where technology governs our lives in its all possible manifestations. Today’s dream becomes a necessity tomorrow, as technology has no boundaries; it gets evolved with very the thought of making life easier.

Supreme Court today dismissed the SLP filed by the trading clients challenging the Bombay High Court's Order dated 22.8.2014 granting bail to Mr Jignesh Shah.

Quoting futuristic vision of FTIL – on board expansion

FTIL Board reaffirms its confidence in Management Team to execute on its Founders’ Vision 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 next 10 years. In the series of events, ODIN to be spun out as separate subsidiary or SBU to attract majority strategic partner / investor was the highlight.

As the new directors were welcomed, the experts in FTIL alluded that the vision 2025 for FTIL was futuristic and pragmatic. The occasion of the expansion of FTIL board got stimulating citations from the leaders of FTIL, as well as the new directors.

Mr Venkat Chary, IAS (Retd), ex-Chairman FMC and Chairman FTIL, welcomed the new Directors on the Board, saying - "Both Berjis and Anil are world class industry seasoned professionals known for being highly independent and vocal about corporate governance and protecting minority shareholder interest on the companies where they serve on the Board, and FTIL will certainly benefit from their experience as the company transforms itself under leadership of its Founder and MD, Jignesh Shah, in to technology partner to build and power new generation digital enterprises that will emerge over next 10 years as part of his vision Digital India @ 2025. Prashant Desai is a thorough industry professional and has played key role in IR and M&A over past year at FTIL."

Mr Jignesh Shah Founder and MD of FTIL also congratulated the new Board of Directors and said, "I have no doubt that the new Board coupled with FTIL’s technology, scale and execution capabilities can significantly contribute in creating & powering at least 100 new digital leaders in 10 key sectors over next 10 years. These new Digital Disruptors will be the bellwether of inclusive development and growth besides creating a domino effect in the ecosystem that will be breeding ground to more new entrepreneurs, start-up’s and job creation and will become the showcase of Digital India by 2025."

Mr Berjis Desai said, “FTIL is a global leader in building robust, enterprise class, scalable and cost efficient technology for developing but fast growing markets like India, SE Asia, Middle East and Africa and I’m excited to be part of its Board as the company embarks on its journey to shift orbit and become preferred technology partner for India’s next emerging tech-enabled giants in key vertical sectors, in line with its Founder’s vision of Digital India @ 2025."

Mr Anil Singhvi said, "I believe, FTIL with its world class Talent, Technology, Capital, Infrastructure and Leadership is ideally poised to become the obvious choice as partner for entrepreneurs and organizations, who would rather outsource the services and conserve the resources to scale up their business. I’m excited about the journey ahead and optimist about FTIL Management team’s ability to execute on Founder’s Vision of Digital India @ 2025".

Mr Prashant Desai added to their view saying, "Despite the recent challenges, there is renewed positive energy within all corners of FTIL. The team is confident of its ability and is confident that FT 3.0 will emerge as a unique Indian IT company focused on ‘technology + innovation+ enterprise’ DNA of FTIL and in the process create significant shareholder value. I am very happy to be on the Board."

Subsuming the views and quotations, the metamorphosis of FTIL with the latest FT 3.0 technology complemented their views and space-age vision for FTIL, to enthuse stakeholders with realistic growth that is expected to be exponential in the coming times. 

New rollers of developments at FTIL

The week gone by has brought in new waves of optimism for FTIL. FTIL turned new leaves with a distinct step forward – the expansion of FTIL Board, having inducted industry leaders commanding colossal wealth of experience in the business spectrum. Among the inducted directors were Mr.Anil Singhvi, Mr. Berjis Desai and Mr. Prashant Desai. The former MD and CEO of Ambuja Cement, Anil Singhvi will be part of the Board of Directors along with the founder of the law firm – J Sagar Associates, Mr. Berjis Desai, as non-independent and non-executive directors. The investor relation expert, Mr. Prashant Desai will be on FTIL Board as an executive director.  

Empowering the board with more able hands to ripple FTIL’s progression was, evidently, the core objective. All three of them have hailed as exceedingly successful leaders in their fields of functionality. Their credentials have led numerous organisations to the pinnacle of accomplishments.

Bergis Desai – a law graduate from the Mumbai University and a post-graduate in law from Cambridge University, UK, was the managing partner of J. Sagar Associates, a national law firm, with the strength of over 300 lawyers, since April 2003. He specializes in financial and international business laws and international commercial arbitration. He is also a director of leading companies including The Great Eastern Shipping Company Ltd., Praj Industries Ltd., Emcure Pharmaceuticals Ltd., Edelweiss Financial Services Ltd. and Adani Enterprises Ltd.

Mr. Anil Singhvi, a chartered accountant, is the Chairman of Ican Investments Advisors Pvt. Ltd., with over 30 years of experience in corporate sector, which constitutes 22 years of extensive experience having worked with Ambuja Cements Ltd. where he excelled to the high echelon of MD & CEO. By worthy organic and inorganic strategies, the company grew from less than one million to 20 million tonnes, wherein he played a crucial role in the sale of Ambuja & ACC to Holcim, with a transaction value of over $ 2 billion. His approach was multidimensional, having conceptualised and advised merger of Enam with Axis, a deal that involved about US $ 500 million, and having founded IIAS (Institutional Investor Advisory Services India Ltd.), proxy advisory company for Institutional Investors.

It was a ground-breaking determination for refining corporate governance and accountability of the corporates. IIAS covers over 300 large Indian corporates and advises Investors on the issues of corporate governance and voting. Apart from being Corporate & PE Advisor, he is also on the board of various companies viz. Hindustan Construction Co. Ltd., Capital First Ltd., Subex Ltd, Greatship (India) Ltd., Lavasa Corporation Ltd.

Mr. Prashant Desai commands 20 years of valuable experience, which constitutes 10 years in investor’s relation. He is an associate chartered accountant and ranked 4^th, whilst graduating in cost & work accountant. He founded Seagull IR Solutions Pvt. Ltd., which happens to be one of India’s leading investor relations companies. It has represented numerous companies viz. Financial Technologies (India) Ltd. (FTIL), Pipavav Defense, Phoenix Mills, Talwalkars. Provogue, Prozone CSC, Everstone, Dhunseri Petrochem, DQ Entertainment, Supreme Infrastructure and many more. Before this stint, he headed IR

& Investments at Future Group (Pantaloons Retail, Future Capital Holdings & Future Ventures, Mumbai). He was also head of research at Rare Enterprises, a Rakesh Jhunjhunwala partnership firm, in Mumbai. He was also a board member in Pantaloons, Talwalkars, Future Staples, Future E-Commerce, Pan-India Foods and Industree Crafts. He was President, Mergers & Acquisition and investor Relations at FTIL, since December 2012. He also represents FTIL on the boards of Dubai Gold & Commodity Exchange, Bourse Africa Ltd., Mauritius and Bahrain Financial Exchange, Bahrain.

The new inclusions to the FTIL Board were welcomed by all in FTIL, particularly, by the founder and MD of FTIL – Mr. Jignesh Shah and Mr. Venkat Chary, IAS (Retd), ex-Chairman FMC and Chairman FTIL. 

NSEL-FTIL merger proposal- Standards ruptured. How Satyam case is different from FTIL’s.

Appalling ideas wished-for, to further impose on FTIL! Earlier, it was the proposed idea of NSEL-FTIL merger by Forward Markets Commission, which was subsequently ordered by the Ministry of Corporate Affairs (MCA); then taking possession of FTIL management has been on government’s anvil. Now, is it just getting arms over resources or getting the claws into the healthily operational organisation, for which the activism is being sped up?

“The government owes the nation an explanation as to why and on what grounds the Forward Markets Commission (FMC) has been making these proposals to breach FTIL’s limited liability……..”(Source – EconomicTimes, Oct. 28, 2014. Edit, PageNo.16).

Would there be a tenable reasoning to all that the nation is looking up for. Also, suggests the excerpts of the Economic Times’ edit page titled “Who’s Targeting FTILBreaching all Norms?”It reads as –“It is entirely unwarranted to do a Satyam on FTIL, on the pretext of speeding up the process of recovery from the defaulting traders of NSEL.

The government owes the nation an explanation as to why and on what grounds the Forward Markets Commission(FMC)has been making these proposals to breach FTIL’s limited liability when no wrongdoing or improper pecuniary gain has yet been established against its management and when there are clearly identified defaulters who carried out trades with non-existent underlying stocks and whose obligation to pay is beyond dispute? And why have the ministries of law and corporate affairs been indulging in these patently misconceived demands by the FMC?”

As it has been talked on countless forums that the Economic Offences Wing (EOW) has identified and frozen the assets of the defaulters and a panel has been set up by the Bombay High Court for recovery, what’s the panic to merge and take over all about? But what’s more stroppy is that the hounding actions taken on Satyam are being proposed for FTIL.

Straightforwardly, these are two diverse gears! There are contrasting events in both the cases, thus no parity can be drawn between the two. FTIL’s case cannot be labelled as a corporate scandal.

Here are some contrasting reasons as to how FTIL’s case is far different from Satyam’s, in detail:

Firstly, in the case of Satyam, the promoter had confessed in writing to the regulator of his wrong-doings, whereas there was vehement and consistent denial by the promoter of FTIL, of any wrong-doings whatsoever. The matter of his culpability is sub-judice. Also, the question whether NSEL itself is liable for the trading losses incurred by the 13,000 clients of the brokers who traded on the NSEL platform for higher returns (“Trading Clients”) is currently sub-judice before the Bombay High Court. Hence, the question of FTIL being held liable through piercing the corporate veil does not arise.

Secondly, Satyam’s promoter confessed siphoning-off the company’s funds to his realty firm Maytas infra. Whereas in the case of FTIL, even after 12 months of investigation byEOW, ED and CBI, not a single paisa of the Trading Clients’ money traced eitherto NSEL, Mr. Jignesh Shah or FTIL. On the contrary, the entire money of the Trading Clients (i.e. Rs. 5,500 Crores) has been traced to 22 Defaulters who used that for repaying loans, working capital requirements, real estate and luxury cars. In fact, 85% of the Trading Clients’ money is with just 7 Defaulters. Both the above aspects confirmed by the Bombay High Court’s Order of 22 August 2014 granting bail to Mr. Jignesh Shah.

Thirdly, Satyam’s promoter confessed fudging of books of account of Satyam. But in FTIL’s case, No major irregularities found in the ROC’s inspection of FTIL. FTIL audited by one of the Big-4 accounting firms which has not found any irregularities in FTIL’s accounts so far. Further, no loan defaults by FTIL till date have been found. FTIL was granted licenses to set up exchanges by Indian regulators (such as SEBI, CERC, FMC) and overseas regulators such as Singapore, Dubai, Mauritius, Bahrain etc. after thorough due-diligence and background check of the company and its promoters.

Thus, in the case of Satyam, there was a fraud in the company (i.e. Satyam) itself perpetrated by the promoters who were also in management. Hence, the remedy was to change the management- whereas in the case of FTIL, no fraud has been detected by the courts or investigating agencies. It is a case of payment and settlement defaults at FTIL’s subsidiary NSEL due to the 22 Defaulters failing to honor their pay-in obligations towards NSEL. Hence, the remedy lies in chasing these Defaulters and ensuring recovery of the Trading Clients’ monies from them.

In spite of all that, the actions are planned to be cuffed on FTIL. The sanctity of limited liability is expected to hobble with such actions, and it’s been time and again voiced out by numerous media houses. ‘Coming up good times’, as the colloquial more coined now and then - will it see the times when norms and laws are not violated, and also, the rights and ‘limited liability’ privileges of the investors across-the-board are protected, by even-handed outlook.