NSEL Investors Forum (NIF), a body representing nearly 13,000 investors of failed National Spot Exchange Ltd which is embroiled in a Rs 5,600 crore payment crisis, today welcomed the government's decision to merge NSEL with its holding group Financial Technologies.
Ministry of Corporate Affairs today invoked section 396 of Companies Act, 1956, ordering merger of NSEL with Financial Technologies (India) Ltd (FTIL).
"The investors are now confident of their recovery. They are aware that there could be torturous and long legal process, but they are also confident that the government will defend its decision tooth and nail and ensure full recovery to the investors," NIF chairman Sharad Kumar Saraf said in a statement here.
NIF is grateful to the NDA government for its bold and decisive step. It shows the government's commitment to contain frauds and scams perpetrated on investors. This decision will certainly bolster confidence of investors to a great degree. NIF hopes the government will follow up its order and ensure quick redressal to the investors, he said.
The government has sought comments from members of the two companies as well as the creditors on the draft order. Recently, Forward Markets Commission (FMC) had suggested the merger of the spot exchange with its promoter FTIL for speedy recovery of dues from defaulters.
