FTIL may go Satyam way, but legal tussle could ensue

  |   28 October, 2014   |   711   |   3980

Moneycontrol Bureau

In what would be only the second instance since the Satyam Computers scam broke out in 2009, the government is considering superseding the board of Financial Technologies India Limited (FTIL) , the listed parent firm of scandal-tainted National Spot Exchange Limited (NSEL), according to a report in the Indian Express this morning which quoted sources.

FTIL is promoted by Jignesh Shah, who was arrested and later granted bail in the Rs 5,600 crore NSEL case, in which the spot exchange was, in August 2013, discovered to have violated regulations by facilitating forward trades without ensuring adequate underlying collateral. The trades initially fetched solid returns for investors but later turned out be a Ponzi scheme, according to the Mumbai police.