Companies & Sectors
NSEL: Financial Technologies asks shareholders to oppose 'forced' merger

In a letter, board chairman Venkat Chary has asked FTIL shareholders to send to the Ministry of Corporate Affairs their objections to the draft order on merger of NSEL with the company 

 

Financial Technologies (India) Ltd has asked its shareholders to oppose the proposed 'forced' merger of crisis-hit National Spot Exchange Ltd (NSEL) with itself. Last year in October, the union government had ordered the merger of NSEL with its parent FTIL.
 
"... We request you as a responsible owner of your company to send to the Ministry of Corporate Affairs, your genuine, bonafide and reasoned objections to the draft order," FTIL board chairman Venkat Chary said in a letter to shareholders.
 
The draft order, issued by Ministry of Corporate Affairs (MCA), was aimed at ensuring faster recovery of dues for entities hit by Rs5,600-crore fraud at the bourse.
 
Chary, who is also an independent, non-executive director, said the company is pursuing every legal means available to ensure that rights of over 63,000 shareholders are protected.
 
"You (shareholders) too are entitled to object to the forced amalgamation of NSEL with your company by exercising your right of opposition...," he said.
 
Even though FTIL has challenged the Ministry's draft merger order, the Bombay High Court has ruled that the Ministry can pass its final order and then the company can challenge the same.
 
According to the letter, FTIL has Rs2,000 crore cash and a debt of Rs475 crore after it was forced to sell its stake in MCX, MCX-SX and SMX, among others.
 
"Assets like BFX, Bourse Africa, DGCX and Atom will add further to FTIL's cash reserves. These cash reserves of FTIL belong to you and only you, the 63,000 plus shareholders of FTIL, as your legal right," the letter, dated 24th February, said.
 
The proposed merger would adversely impact shareholders and over 1,000 employees, it added.
 
"What we fail to understand is why the MCA is in such a tearing hurry to forcibly amalgamate NSEL with FTIL, when the challenge to the Forward Markets Commission (FMC) order is pending and the question of whether or not FTIL is liable for the alleged events at NSEL is pending adjudication before the Bombay High Court?" Chary said in the letter.
 
Post-merger, NSEL's entire business, properties and liabilities, among others, will get transferred to FTIL. The payment crisis at NSEL came to light in July 2013.
 
"Should the proposed amalgamation be permitted, it will open the doors for similar action being taken in every case where a subsidiary is facing an unproven/potential liability, so that the holding company is then sought to be held liable through the mechanism of such forced amalgamation," the letter said.
 

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Human trafficking: NHRC seeks report on placement agencies

The Commission took suo motu cognisance of a media report that claimed surging demand for domestic help in Delhi is fuelling a business that thrives on human trafficking by unregulated placement agencies

 

The National Human Rights Commission (NHRC) on Thursday asked Delhi Police to submit a report about placement agencies working in the national capital on allegations over their involvement in human trafficking.
 
According to an official statement, the Commission has issued a notice to the Delhi Police Commissioner to respond within two weeks with a report on the number of placement agencies, registered or unregistered, functioning in Delhi and the steps taken to keep a check on them.
 
The step was taken after the Commission took suo motu cognisance of a media report surging demand for domestic help in Delhi is fuelling a business that thrives on human trafficking by unregulated placement agencies. Hundreds of agencies are reportedly involved in the business of selling domestic workers.
 
There are allegations that the root cause of exploitation of tribal people, mostly women and children and those hailing from rural areas is that there is no hold on the placement agencies, which have emerged as the hubs and transit point for human trafficking.
 
The Commission has observed that the contents of the press report, if true, raise a serious issue of violation of human rights of women and children.
 

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India bans ISIS under Unlawful Activities Act

ISIS had already been declared banned in India under a UN Schedule. The recruitment of youths from India and their radicalisation in ISIS is a matter of serious concern for the country

 

India on Thursday decided to ban terrorist group Islamic State of Iraq and Syria (ISIS) and all its affiliate organisations under the Unlawful Activities (Prevention) Act. The terrorist group is responsible for series of savage attacks and killings in Iraq and Syria.
 
In a notification, the Home Ministry, said, "Recruitment of youths to the outfit from India and their radicalisation is a matter of serious concern for the country especially with regard to its likely impact on national security when such youth return to India."
 
Recently, retired chief of Intelligence Bureau (IB) Asif Ibrahim had said there was an imminent danger of Indian youths moving to the conflict zone (Iraq-Syria), emerging as a role model, and such developments may directly or indirectly pose a threat to the country. “The threat potential is accentuated with some lower rung elements returning from conflict zone,” he had said.
 
It must be noted four Mumbai youths had gone to Iraq-Syria in May 2014 to join ISIS. One of them returned late last year while the whereabouts of the remaining three are yet to be known.
 
A Bangalore-based executive of a multi-national company was arrested in December last year for allegedly running a pro-ISIS twitter handle.
 
Last month, another person from Hyderabad was barred from travelling to Syria, ostensibly to join ISIS.
 
The Islamic State/Islamic State of Iraq and Levant/ Islamic State of Iraq and Syria/Daish and all its manifestations have been declared as outlawed in India under UAPA, a notification issued by the Ministry said.
 
Home Minister Rajnath Singh had said in Parliament on 16 December 2014 that the West Asian group had already been declared banned in India under a United Nations (UN) Schedule.
 
According to the latest notification, the outfit is operating in Iraq and neighbouring countries and has been resorting to terrorist actions to consolidate its position in that area by recruiting youth for ‘Global Jehad’ to achieve the objective of establishing its own ‘caliphate’ by overthrowing democratically elected governments.
 
The group is also resorting to terrorism in the form of killing of innocent civilians and security forces and the central government believes that the Islamic State/Islamic State of Iraq and Levant/Islamic State of Iraq and Syria/Daish is involved in radicalisation and recruitment of vulnerable youth from various countries including India.
 
Singh had said the group has been proscribed under the provisions related to organisations listed in the Schedule to the UN Prevention and Suppression of Terrorism (Implementation of Security Council Resolutions) Order, 2007 made under section two of the United Nations (Security Council) Act, 1947.
 

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