Financial Tech gets shareholders' nod to raise Rs 1,000 cr

The shareholders of Financial Technologies (India) Ltd, the promoter of crisis-ridden National Spot Exchange Ltd (NSEL), had approved a proposal to raise funds not exceeding Rs 1,000 crore from foreign or domestic investors.

According to a BSE filing, the shareholders have unanimously approved issuance and allotment of shares or other securities to foreign or domestic investors in the form of GDRs, ADRs, FCCBs for an amount not exceeding Rs 1,000 crore at the annual general meet concluded recently.

The meeting, in which 194 members in person and 75 members in proxy were present, the resolution for investment in securities of FT Projects Ltd up to Rs 50 crore and to give loans and guarantees or provide security up to Rs 100 crore to FT Projects Ltd, a wholly-owned subsidiary of the company, was also passed unanimously. An approval was also issued for grant of options to equity shares to eligible employees under the ESOP scheme 2013.  

However, the resolution for approval and adoption of audited balance sheet, profit and loss account, director's and auditors' report for the financial year 2012-13 was deferred till further notice. The members also noted the ratification of interim dividend paid during the year and deferred the declaration of final dividend till further notice. The resolution for approval of payment of commission to non-executive directors of the company was also adjourned till further notice. The re-appointment of Deloitte Haskins & Sells as statutory auditors of the company was also deferred.

Matters related to the resignation of C M Maniar and N Balasubrahmaniam, director and additional director respectively, who submitted their resignation, were deleted while another director, Ravi Seth, who was retiring by rotation and not seeking re-appointment, continued to hold directorship till the conclusion of the AGM, which was adjourned till further notice in view of the deferred agenda.

It may be noted that the investors and brokers in NSEL had conducted a protest on September 25, in front of the AGM venue of Financial Technologies held in Chennai. The issue related to alleged financial irregularities in NSEL, which was raised by several shareholders in the meeting, according to the shareholders at the meet.

According to earlier reports, the auditors of Financial Technologies had withdrawn the audit report for the fiscal ended March 31, 2013, in connection with the alleged issues related to NSEL.