MCA seeks Law Min, Sebi's views on FTIL

MCA seeks Law Min, Sebi's views on FTIL

The Ministry of Corporate Affairs (MCA) has sought clarifications from the Law Ministry as well as regulators Sebi and FMC to finalise action against “gross violations” by Financial Technologies and related entities.

Jignesh Shah-led Financial Technologies (India) Ltd is the promoter of National Spot Exchange Ltd (NSEL) and following the Rs 5,600 crore payment crisis at the bourse, these entities alongwith those related to them have come under the scanner of multiple agencies for various violations.

Sources said the ministry has found “gross violations” by FTIL board on corporate governance matters and is looking at the issue of ‘fit and proper’ status of directors, among others.

The promoters of NSEL are found to have violated the provisions of the Companies Act.

While MCA has completed its report on FTIL, it is awaiting the views from the Law Ministry and other agencies before taking a final decision. Clarifications have also been sought from Securities and Exchange Board of India (Sebi) as well Forward Markets Commission (FMC), they added.
An inspection of NSEL books by MCA had found that the exchange’s board failed to perform its duties towards shareholders. The interim report of inspection, carried out by the Registrar of Companies (RoC), Mumbai, had found corporate governance failure at multiple levels, including lack of transparency, integrity, compliance and ethics.

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