As the central regulatory body, MCA holds the responsibility of governing corporations and ensuring sustainable corporate growth — the most crucial growth metric of the last few decades. But alas, the purpose seems to be lost on MCA in the NSEL case where it has looked directionless in its decision making.
Shooting yourself in the foot, a snake biting its own tail or a government overruling its own laws — all iterations carry self-destructive undertones that must ring a bell to Ministry of Corporate Affairs (MCA) in its handling of the NSEL case.
One such ludicrous decision, made on flimsy grounds, with the potential of a dreadful impact is the merger order of the defunct NSEL with FTIL. A move ordered without any rational thinking will burden around 63k innocent shareholders of FTIL with Rs. 5,600 crore. People who were far away from what was happening at NSEL will be made to pay for the sins of defaulting brokers at NSEL, now established as the main culprits in SEBI’s ongoing investigations.
And MCA still couldn’t build up a strong case to make its point, as proven in the Bombay High Court when it stated that not a single penny has gone to NSEL, FTIL or its promoter. At a time when Make in India is galloping towards success, MCA’s actions outline breach of limited liability — just not what an FDI seeking nation would want! Government rethinks its decision!
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