HC orders status quo to proposed merger of FTIL with NSEL

The Bombay High Court today ordered 'a status quo' till December 22 to the proposed merger of Financial Technologies India Ltd with the National Spot Exchange Ltd.
The order was passed by a division bench of Justice V M Kanade and Anuja Prabhudesai while hearing a petition filed by FTIL challenging the proposed merger.
The court asked NSEL, Union Ministry of Corporate Affairs and Investors Forum to file replies to the petition by December 22.
FTIL has questioned the order issued by the Corporate Affairs Ministry on October 21 with regard to the amalgamation/merger.
The government has ordered the merger of the bourse with its parent firm FTIL in order to ensure faster recovery of dues for entities hit by the Rs 5,600 crore fraud at NSEL.

FTIL owns 99.99 percent of NSEL, on which trading was suspended after the fraud came to light in July 2013.
The proposal of merger would take a final shape after taking into account submissions or objections made by the shareholders and creditors of the two companies. Comments have been sought from them till December 20.