CERC to FTIL: Put IEX shares in trust
NEW DELHI: The Central Electricity Regulatory Commission (CERC) has ordered Jignesh Shah-promoted Financial Technologies (India), or FTIL, to transfer by July 2 its entire shareholding in the Indian Energy Exchange (IEX) to a separate trust demat account created by the electricity bourse.
In an order issued on Friday evening, the tariff regulator directed HDFC Bank, which is custodian for the depository service, to transfer the shares into the IEX trust account by July 3 if FTIL fails to comply with the order. CERC said the shares can be transferred to subsequent buyers only with its permission.
FTIL is the parent of National Spot Exchange (NSEL) that is being investigated by the Economic Offences Wing (EOW) of Mumbai Police for the 2013 payment default. FTIL holds 26.6% in IEX and the CERC order is likely to hit renewed efforts to sell its stake in line with the regulator’s May 19 order declaring the company unfit to be a shareholder in view of the EOW probe into group arm NSEL and asking it to exit IEX by June 18, 2015.