FTIL to file a petition in SC seeking stay on fit and proper order

Bombay High Court rejects stay on 'fit and proper' order against FTIL

Financial Technologies (India) Limited, or FTIL, has decided to move the Supreme Court against commodities derivatives regulator Forward Markets Commission’s order declaring it not “fit and proper” to be a shareholder in any exchange.

This was after the high court (HC) here had declined on Monday to give an interim stay on FMC’s order, issued on December 17 last year.

The order had forced FTIL to divest stake in all its investments in exchanges, here and abroad. The order followed a default of Rs 5,600 crore by National Spot Exchange Ltd (NSEL), a subsidiary of FTIL.

It has also filed a suit to the HC here against the government's proposal to merge NSEL with FTIL.

Meanwhile, in a separate development, the Supreme Court on Monday dismissed a petition from NSEL investors who had challenged the HC's grant of bail to Jignesh Shah, the chairman of FTIL.

The court order had also said the NSEL investors were, in reality, traders. The investors’ forum had objected to this, too, in their petition.

Reacting to the development, FTIL said:  “FTIL filed a notice of motion for a stay of the FMC’s order, on the basis there has been a fundamental change in circumstances since the time when the stay of the order was initially refused (February 28).

Today the HC refused to grant any relief but gave liberty to FTIL to file a special leave petition to the Supreme Court to challenge the decision of the division bench.”