FTIL gets SC stay against CERC order to transfer its IEX shares

The Supreme Court on Thursday stayed the order of power sector regulator CERC asking Financial Technologies India Ltd (FTIL) to transfer all its shares of India Energy Exchange (IEX) to a trust <g data-gr-id="23">demat</g> account. A bench of justices Ranjan Gogoi and M Y Eqbal also issued notice on the plea filed by FTIL against the recent order of the Central Electricity Regulatory Commission (CERC) to divest its entire stake in IEX by July 20.

The CERC had given FTIL time till July 2 to transfer its entire stake in IEX to an IEX-owned trust <g data-gr-id="19">demat</g> account and exit the exchange by July 20. FTIL, which has 26 <g data-gr-id="20">per cent</g> stakes in IEX, was required to divest its shares in IEX as per the CERC’s direction which had come after a Rs 5,600 crore fraud surfaced at the National Spot Exchange Ltd (NSEL). FTIL holds 99.99 per cent of NSEL. IEX is the country’s leading power exchange.

Earlier in the week, Financial Technologies of India Ltd began the process of selling its 23 per cent stake in MCX-SX Clearing Corporation in order to comply with an order of capital markets regulator Securities and Exchange Board of India (Sebi). Sebi had directed FTIL to divest its shareholding in several entities including MCX-SX Clearing Corporation Ltd. FTIL floated an expression of interest (EoI) from entities interested in acquiring its 23 per cent stake in MCX-SX CCL.