FTIL's majority shareholders object to government's amalgamation plan

Mumbai, March 10: Fincial exchanges operator Fincial Technologies (FTIL) said on Tuesday that 99.55 percent of its shareholders have objected to the government’s move to amalgamate the company with NSEL (tiol Spot Exchange Limited).

The company said 99.55 percent of the shareholders have objected to the proposed amalgamation of NSEL with the FTIL, which represents 79.58 percent of the total equity capital of FTIL.

According to the company, a mere 0.45 percent were in favour of the proposed amalgamation of NSEL with the FTIL.

The company further said that 100 percent of its creditors, the entire board of directors of FTIL and 100 percent of the over 1,000 employees of the company have objected to the amalgamation.

FTIL said that the results were computed from the response of more than 18,700 shareholders who have sent an email to ministry of corporate affairs (MCA) and marked a copy to the FTIL as on the last date of voting deadline set by Bombay High Court.

The company said the voting data has been verified by an independent auditor.

“We are obliged and thankful to our shareholders and creditors who have joined hands with us to raise their concern on the proposed amalgamation of NSEL with FTIL, with the MCA,” said Venkat Chary, chairman, FTIL.

“The proposal is detrimental to interest of 63,000 shareholders and over 1,000 employees of FTIL. Nearly 80 percent of our shareholding and majority of other stake holders have clearly indicated that they are against the proposed amalgamation in the me of public interest of trading clients of NSEL,” Chary said.

The company added that its board has appointed a committee under the leadership of Chary to discuss all issues with the government.

Earlier on March 2, the company had opposed the government’s move to remove and supersede its board.

The company’s board had passed a resolution on March 1, 2015 to strongly oppose the MCA’s petition to the company law board (CLB) seeking the ‘removal and supersession of the FTIL board.’  (IANS)