- The government is trying to push through the NSEL-FTIL merger by violating rules of limited liability
- It seeks to protect interests of 13,000 NSEL investors by sacrificing that of 64,000 FTIL investors
- GOI rejected objection of FTIL shareholders, saying that it was orchestrated as the responses were in the same pattern
- No big political leaders identifying with Shah, as NSEL has become a much publicised and sensitive case
- Bureaucrats pushed forward the merger after it was kept on the backburner by the previous government
In the last few days, staff at Financial Technologies India Ltd’s (FTIL) Andheri headquarters in Mumbai has been on edge. A Ministry of Corporate Affairs (MCA) order recommending a merger of FTIL’s subsidiary, the troubled National Spot Exchange of India Ltd (NSEL), into the larger parent has thrown everyone into a tizzy. This comes two years after a scam that shocked the market—13,000 investors of NSEL lost Rs 5,600 crore. After the merger, the responsibility to return the investors’ money would fall on FTIL, even as it has tried to distance itself from NSEL’s shenanigans.