ED attaches FTIL’s MFs worth Rs 307 cr

The Enforcement Directorate, Mumbai, has attached Rs 306.70 crore worth assets belonging to Jignesh Shah-promoted Financial Technologies India Ltd (FTIL). aIn a filing to the BSE, FTIL said: "The company has received a provisional attachment Order from the Directorate of Enforcement, Mumbai, attaching mutual funds amounting to Rs 306.70 crores." The company is taking appropriate steps in consultation with its legal counsel, it added. Earlier this week, CBI arrested FTIL promoter Jignesh Shah in a case of alleged cheating and suppression of facts in getting SEBI extension to MCX-SX to continue as a private stock exchange in violation of norms. FTIL is in crisis following the Rs 5,600 crore payment default at its subsidiary National Spot Exchange Ltd (NSEL) in August 2013 affecting 13,000 investors. Earlier this year, the government had ordered a merger of scam-hit NSEL with its parent FTIL. The merger will allow for settlement of Rs 5,600 crore dues of the now-defunct exchange.

FTIL has provided an update to its shareholders related to the government's proposed merger of the company with subsidiary National Spot Exchange Ltd (NSEL). The final order issued by the Corporate Affairs Ministry for the merger is "stayed till September 26, 2016 when the Bombay HCis scheduled to decide on the legality and validity of the final order," the company said.