Majority FTIL shareholders object to NSEL's amalgamation with it

18,700 shareholders responded by email to MCA regarding the matter

Financial Technologies’ (FTIL’s) shareholders, creditors and employees have objected to the proposed amalgamation of its scam-hit subsidiary, National Spot Exchange Ltd (NSEL), with it.

In the voting on the government proposal, after being urged by the management to vote against, 99.55 per cent of the shareholders, representing 79.5 per cent of the equity capital in the company, did so. Also, all the creditors, the entire board of directors and all the 1,000-plus employees said they objected.

FTIL stated the results were computed from the response of about 18,700 shareholders who sent an email to the ministry of corporate affairs (MCA) and marked a copy to FTIL, as on the final date of the voting deadline set by the high court here. This was verified by an independent auditor, KDS & Co.

The 18,700-plus shareholders were from 26 states and five Union Territories, and across 12 nations, said FTIL.

The objections/suggestions on the draft order of amalgamation of NSEL with FTIL continued till the closing time, with many deprived due to “mailbox being full”. Approximately 12,500 e-mails bounced back and the hard copies of these on a compact disc were sent to MCA, the company added.

“The merger proposal is detrimental to the interest of 63,000 shareholders and over 1,000 employees of FTIL. Nearly 80 per cent of our shareholding and a majority of other stake holders have clearly indicated they are against the proposed amalgamation in the name of public interest of trading clients of NSEL. While the recent report clearly questions the genuineness of 13,000 numbers of trading clients coupled with entitlement thereof, whereas the approximate 80% shareholding are real investors with complete know your client (KYC) bonafide owners of the Company who have objected to the amalgamation and have expressed solidarity and faith in the Company and its management." said Venkat Chary, Chairman, FTIL.