Supreme Court orders FTIL to transfer IEX shares in escrow account
The Supreme Court on Monday directed Financial Technologies India Ltd (FTIL) to transfer all its shares in India Energy Exchange (IEX) to an escrow account.
The court on 2 July had stayed the Central Electricity Regulatory Commission’s (CERC’s) 26 June order asking FTIL to transfer the share to a separate trust demat account.
A bench headed by justice Ranjan Gogoi said that FTIL would not have any voting rights or corporate benefits on the modification of the order.
FTIL had moved the apex court against the CERC order.
FTIL has a 26% stake in IEX and was to divest it as per a CERC direction of 13 May 2014. This direction came after aRs.5,600-crore fraud surfaced at the National Spot Exchange Ltd (NSEL). FTIL holds 99.99% of NSEL.
On 19 June, FTIL had entered into a share-purchase agreement with several entities, including DCB Power Ventures Ltd and Aditya Birla Private Equity, to sell a 16.6% stake in IEX for Rs.357.06 crore.