Five-member panel to oversee FTIL investments

Instead directs constitution of five-member committee (three from FTIL & two from NCLT) to oversee regulatory sale and investment by FTIL

The National Company Law Tribunal (NCLT) on Thursday rejected the Union corporate affairs ministry's plea to appoint two government nominees on the Financial Technologies (India) (FTIL) board of directors and instead gave a direction to constitute a five-member committee to oversee the regulatory sale and investments by FTIL.

The government had filed a petition seeking further interim relief by way of appointing government nominees on the FTIL board. FTIL opposed this.

The committee will comprise the managing director of FTIL, two independent directors of FTIL, a retired judge of the Supreme Court and a NCLT nominee.

NCLT said the committee shall have the power to decide on sale of investments held by FTIL in compliance with any order/direction passed by any regulatory or statutory authority in India or abroad, as and when such sale is proposed by the management of FTIL. With this order, FTIL can invest surplus funds or alter the investment of surplus funds, in consultation with the committee. Working capital requirements of FTIL subsidiaries will also be coordinated through the committee. It also directed that the ministry and FTIL to give nominations within two weeks. Both FTIL and the ministry may approach NCLT if they find decision of the committee not favourable.