Financial Technologies said that the Supreme Court has stayed an earlier order by the Central Electricity Regulatory Commission directing Indian Energy Exchange to transfer its shares in the exchange to a trust.
The CERC issued the order on June 26, 2015, directing FTIL (Financial Technologies) to transfer its entire shareholding in the Trust Demat Account of IEX by July 2, 2015.
The CERC order was based on an earlier order by the Forward Markets Commission that held that FTIL was not a fit and proper entity to run exchanges.
“FTIL believes that CERC’s order of declaring FTIL not fit and proper, calling upon FTIL to divest IEX shares and the order directing FTIL to transfer is without power and jurisdiction,” FTIL said.
It was argued on behalf of FTIL that there was a fundamental issue of jurisdiction in respect of the order passed by the CERC. FTIL’s application also stated that a forced transfer would affect the interests of the shareholders of a public listed company who are more than 63,000 in number. The Supreme Court direction protects the interests of over 63,000 shareholders of FTIL.
The Supreme Court heard the matter today in the presence of FTIL and CERC counsels.
“The Judge is of the view that status quo needed to be granted in the matter, particularly in the light of the fact that on earlier occasion SC issued notices to CERC in FTIL’s appeal on the Fit and Proper order and the order for divestment of shares,” FTIL said.