The Supreme Court on 17-08-2015 directed Financial Technologies India (FTIL) to transfer all its shares in India Energy Exchange (IEX) to an escrow account.
The court had on July 2 stayed the Central Electricity Regulatory Commission's (CERC) order that asked FTIL to transfer its entire shareholding in IEX, which is the country's leading power exchange with more than 95% of the market share, to a separate trust demat account created by the electricity bourse and exit the exchange by July 20.
A bench headed by Justice Ranjan Gogoi said FTIL would not have any voting rights or corporate benefits on the modification of the order. FTIL had moved SC against the CERC order, which was based on an earlier order by the Forward Markets Commission (FMC) that held that FTIL was not a fit and proper entity to run exchanges.
FTIL, which owns 26% stake in IEX, is required to divest the same as per a May 2014 direction from the CERC after a Rs 5,600-crore fraud surfaced at the National Spot Exchange. FTIL holds 99.99% in NSEL. The 2013 fraud is being investigated by the economic offences wing of Mumbai Police. FTIL had stated that CERC has no jurisdiction to pass such an order and the forced transfer would not only affect the interests of its 60,000 shareholders but also affect the share valuation.
Source- Indian Express