Skip to main content

Company Law Board hears FTIL plea on modifying interim order

By
The principle bench of the Company Law Board (CLB) on Monday heard Financial Technologies (India) Ltd’s (FTIL) plea for modification of its interim order on managerial mismanagement of the National Spot Exchange Limited (NSEL) scam.
The FTIL-NSEL fraud came under the scanner after the latter failed to repay its investors on commodity pair contracts after July 2013. The subsequent investigations led to the Ministry of Corporate Affairs ordering a forced merger of FTIL and NSEL, its subsidiary, on February 12 to pay back losses suffered to investors of the latter.
The government-mandated amalgamation, the first of its kind in India, has since sparked a series of challenges across various courts and tribunals. The order was challenged in the Bombay High Court, which eventually stayed its operation till June 15, pending final adjudication. In the meanwhile, the government had approached the CLB to substitute FTIL's board, for smooth functioning of the amalgamation process. Upon hearing the preliminary submissions, the chairman of the CLB passed an ad-interim order on June 30, 2015 freezing FTIL's assets to avoid siphoning off until a final order was passed on the application made by the government. The June 30 CLB order was subsequently challenged by FTIL in the Madras High Court, which issued temporary relief to the company by staying the ad-interim order, while directing swift disposal of the issue by the CLB.
The stay was challenged by the government in the Supreme Court, which on April 18 reversed the Madras High Court order.
In Monday’s hearing, Abhishek Singhvi, counsel for FTIL, said restricting transactions of movable assets had crippled the firm’s ability to transact on investments, leading to large losses to its portfolio.
Business Standard New Delhi, 24th May 2016

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Healthy balance sheets augur well for economy: RBI Governor Sanjay Malhotra

By
  Large tariffs by the United States administration and elevated geopolitical risk have increased near-term global financial stability risks, and along with weather events pose downside risks to domestic growth, Reserve Bank of India(RBI) Governor Sanjay Malhotra said in the foreword to the Financial Stability Report released today.Noting that domestic growth momentum is buoyed by strong domestic drivers, sound macroeconomic fundamentals and prudent policies, Malhotra said: “External spillovers and weather-related events could pose downside risks to growth.”On the other hand, he said the outlook for inflation is benign, and there is greater confidence in the durable alignment of inflation with the Reserve Bank’s target.Commenting that the structural shifts reshaping the global economy are making policy intervention challenging, the Governor emphasised the need for central banks and financial sector regulators to remain vigilant, prudent and agile in safeguarding their economies and...
Post a Comment
Read more