Protecting limited liability

Apex court's ruling on NSEL should be welcomed

In an important judgment, the Supreme Court has struck down the enforced merger of the National Spot Exchange Ltd (NSEL) with 63 Moons Technologies (the erstwhile Financial Technologies India, or FTIL). This has important implications for corporate governance and also articulates the apex court’s understanding of “public interest” in detail. The merger had been enforced by the Central government in February 2016, after a scam led to defaults, and closure of the NSEL in 2013. The NSEL is a subsidiary of 63 Moons, and the merger would have meant that the liabilities of the NSEL would impinge upon 63 Moons.