The document discusses concerns with the proposed merger of NSEL and FTIL, as recommended by the FMC. It argues that the FMC chairman's recommendation of the merger sets a dangerous precedent, as the case was still pending. The merger would erode FTIL's net worth and harm its 63,000 shareholders. The document also claims that the merger would not help repay dues owed by 24 defaulting companies to trading clients, and that the FMC should focus on pursuing these defaulters instead of solely targeting FTIL.

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