FTIL merger issue to be known by Monday

Mumbai: Investors on scam-hit NSEL will finally know the fate of the merger of the exchange with its parent Financial Technologies (FTIL) by Monday. “Ministry of Corporate Affairs advised to decide on draft order of merger within stipulated time that is by 15th February, 2016,” the finance ministry tweeted.

“Securities and Exchange Board of India ( SEBI) was advised to examine and take the necessary action against defaulting brokers as per law.” The government passed a draft order on the merger on Oct 22, 2014 after a Rs 5,600-crore scam surfaced on NSEL.

FTIL challenged the order in the Bombay High Court. The government sought three extensions to pass the order. The court finally granted it time till Feb 15, 2016. FTIL’s stock ended down 3.5% at Rs 94.10 on the stock exchange on Thursday.

The company a day earlier reported a standalone profit of Rs 94 crore for the third quarter of 2015 against a loss of Rs 4. 9 crore a year ago.