FMC (Forward Markets Commission) has played a major role in the NSEL crisis

2.  Introduction
 FTIL-NSEL merger not justified
 Who will the merger actually benefit?
 conclusion

3.  FMC (Forward Markets Commission) has played a major role in the NSEL
crisis
 The chairman of FMC, Ramesh Abhishek, had first passed an order
declaring Financial Technologies India Ltd (FTIL), not fit and proper
 As a result all other regulators used this order as a base to ensure other
exits of FTIL
 This draft order for merger of NSEL with FTIL, proposed by the Ministry
of Corporate Affairs (MCA) on the sole recommendation of the FMC sets
a dangerous precedent
 FMC was pressing for the merger of NSEL with FTIL even though the
case was still sub juice

4.  NSEL was a limited liability company
 Section 396 of the Companies Act states merger of two public
limited companies
 Government has sought to force-merge two private entities by
applying a section which is actually meant for Public Sector
Enterprises
 Merger should ideally happen only if both parties agree for
Amalgamation, but it is clearly not the case here

5.  FMC’s recommendation of the merger seems to be one sided
 Proposed merger of NSEL with FTIL will in fact erode the entire net
worth of FTIL
 It will also harm the 63000 shareholders, lift the corporate veil & set a
dangerous precedent
 This merger is clearly not in public interest
 FMC's recommendation of merger will also not help in repayment of
dues of trading clients of NSEL
 Dues have to be repaid by 24 defaulting companies, & not NSEL
which merely provided a platform for trading

6.  FMC has all the powers to take any action deemed appropriate
against defaulters & brokers
 FMC chairman however turns a blind eye to them
 FMC has always been chasing FTIL only
 It is high time that FMC starts chasing other parties like brokers
 They should also peruse defaulters to whom the money trail has been
traced to instead of concentrating only on FTIL