The document discusses the proposed merger between Financial Technologies (India) Limited (FTIL) and its subsidiary, the National Spot Exchange (NSEL) in the wake of the 2013 NSEL crisis. It provides background on FTIL and NSEL, and details about the Rs. 5,600 crore NSEL crisis. It outlines the government's draft order for the FTIL-NSEL merger and discusses FTIL Chairman Venkat Chary's objections to the forced amalgamation. It also notes that over 60,000 FTIL shareholders have raised objections to the draft merger order.

1. FTIL-NSEL Merger

2. • FINANCIAL TECHNOLOGIES (INDIA) LIMITED
(FTIL)
• NATIONAL SPOT EXCHANGE (NSEL )
• NSEL CRISIS
• FIRST MERGER ORDER
• MR. VENKAT CHARY’S VIEW ON MERGER
• FTIL EMPLOYEES
• CONCLUSION
Agenda

3. Financial Technologies (India) Limited (FTIL)
 FTIL is an Indian financial services
company, formed in 1988
 It is promoted by the Financial
Technologies Group
 The group offers technology IP
(Intellectual Property) to create & trade
on next-generation financial markets,
across asset classes including equities,
commodities, currencies & bonds among
others

4. National Spot Exchange (NSEL)
 NSEL is a Commodities Exchange in
India, founded in 2005
 NSEL is a company promoted by
Financial Technologies India Ltd.
 NSEL commenced its live trading
operations in different commodities on,
15 October 2008

5. NSEL Crisis
 NSEL Crisis is estimated to be a Rs. 5600 crore that came out to light
after the National Spot Exchange failed to pay its investors in
commodity pair contracts after 31 July 2013
 NSEL has declared 22 members as ‘Defaulters’ on 22nd & 28th August
2013 and 22nd October 2013 as per Rule 41 of the Exchange Bye laws
 So far, defaulters’ properties worth around Rs. 5,000 crore have been
attached by the Economic Offences Wing (EOW) of Mumbai Police

6. First Merger Order
 On 21 October 2014 the Ministry of Corporate affairs announced a draft
order for merger of NSEL which is the subsidiary company with its
holding company ,viz., FTIL
 The government by announcing this merger has exercised its powers
under Section 396 of the Companies Act,1956

7. Mr. Venkat Chary’s view on merger
 FTIL Chairman Mr. Venkat Chary said “All
Shareholders are entitled to object”
 He said they can exercise their right of
opposition to the forced amalgamation of
NSEL with FTIL under section 396 of the
Companies Act, 1956
 FTIL- NSEL could come forward with a
pragmatic solution

8. FTIL Employees
 FTIL Employees and shareholders are not content & they
raise their voice against forced merger, here is the video
which demonstrates their difficulties

9. Conclusion
 Government should focus on the money trail & bring to
book the 24 defaulters of this scam
 More than 60,000 FTIL shareholders have raised
objections on draft merger
 The final order was expected in the first week of April, but
now its delayed as Bombay High Court accedes to the
Ministry’s request for three more months to pass the final
order

10. I M A G E S A R E F O R P R E S E N T A T I O N P U R P O S E
O N L Y
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