NSEL-FTIL merger: Govt okays share-swap ratio

New Delhi, April 10

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The government has finalised the share-swap ratio for the proposed merger of crisis-hit NSEL with its parent Financial Technologies, which itself will not get any share.

With regard to creditors, the Ministry said their rights would be the same in the merged entity as they are now in NSEL.

Under the swap ratio, decided by the Ministry, NSEL shareholders would get three shares of Financial Technologies (India) Ltd (FTIL) for every eight shares held in spot bourse.

Following the Rs 5,600-crore fraud coming to light at the National Spot Exchange Ltd (NSEL), the Ministry, through a draft order in October last year, had proposed the merger of the bourse with FTIL.

The draft merger order, issued by the Corporate Affairs Ministry, has already been challenged by Financial Technologies (India) Ltd.

There are seven shareholders in NSEL, including FTIL and National Agricultural Cooperative Marketing Federation of India (NAFED). The rest five are nominees of FTIL.

Post merger, FTIL should issue and allot three shares of Rs 2 apiece for every eight equity shares of Rs 10 each held in NSEL, according to the assessment order issued by the Ministry. — PTI