Somehow the good spirit of domestic and global corporate law seems to be vanishing. National Spot Exchange Limited crisis is a befitting example of it.
How harsh and unjust on part of government to impose unjust and unreasonable actions, like a forced merger of NSEL with its parent company Financial Technologies India Limited( FTIL) and suppression of the board of FTIL, for payment default at NSEL. Really wonder if our regulatory authorities and the government contemplated similar initiatives for companies that have experienced financial crisis that are much more grave and serious. No two thoughts that government is succumbing to the demands of vested interests and a minority against a large majority of thousands of shareholders, employees and other stakeholders of FTIL.
If the Government is really keen on settling the claims why can’t it focus its efforts towards investigating brokers who have large role in the marketing, selling and trading of the defaulted contracts ? Why cant it take strict actions against defaulter members who are evading payment?
The Financial Technologies Group has created millions of new stakeholders in the financial system, giving opportunities to earn, grow, and seek sustainable livelihoods. It created and nurtured new market segments and expanded the product ranges to serve a multitude of purposes such as investing, hedging and seeking newer opportunities for wealth creation.
Hope government and regulators consider these achievements and contributions before passing any order against FTIL group.
Reference –Shantanu Guha Ray:(2016): ‘The Target Book’: New Delhi: Publisher: Author Upfront
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