Ministry of Corporate Affairs has taken following actions against NSEL and its promoters and the defaulting companies under various provisions of the Companies Act, 1956:

(i)   Ordered inspection under section 209A of the Companies Act, 1956 of books of accounts and other records of NSEL, Financial Technologies (India) Limited (FTIL - now name changed to 63 Moons Technologies Limited) vide order dated 30-09-2013;

(ii)  Issued Order dated 12-02-2016 of Amalgamation of NSEL with FTIL under section 396 of the Companies Act, 1956 in public interest;

(iii)   Filed an application before Company Law Board (now National Company Law Tribunal) under sections 397-398 read with 388B, 401, 402, 403, 406 and 408 of the Companies Act, 1956 seeking inter alia removal of directors from the Board of Directors of FTIL and praying for suitable interim reliefs;

(iv)   Ordered investigation under Section 210(1) read with Section 212(1) (c) of the Companies Act, 2013 into the affairs of NSEL, FTIL, their 18 subsidiaries and associate companies, the 20 defaulting entities and their role/ nexus with the brokers vide order dated 28-10-2016 and assigned the same to the Serious Fraud Investigation Office (SFIO).

Department of Economic Affairs, Ministry of Finance has constituted a Special Team of Secretaries (STS) to examine the violation of laws and regulations by NSEL/ associated companies and to suggest measures that could be taken to ensure that there is no systemic impact of the NSEL development.  The Committee had submitted its Report on 23-09-2013 and the issues highlighted in the Report are being investigated by the agencies/ Departments/ Ministry concerned. The progress in this connection is reviewed from time to time by the Committee in its meetings with the agencies/ Departments/ Ministry concerned.

In the last three years and the current year (up to 30-11-2016), the Ministry has invoked provisions of section 396 of the Companies Act, 1956 in public interest in the matter of amalgamation of NSEL with FTIL.

This was stated by Shri Arjun Ram Meghwal, Minister of State for Corporate Affairs in written reply to a question in Lok Sabha.

Amalgamation in public interest used to consolidate defaulting exchange with promoter, prompting statutory inspections and SFIO investigation. The Ministry ordered inspection under section 209A of the Companies Act, 1956, effected amalgamation of the exchange with its promoter under section 396 of the Companies Act, 1956, filed company-law applications seeking removal of directors under multiple Companies Act provisions, and ordered an investigation under Section 210(1) read with Section 212(1)(c) of the Companies Act, 2013 into the exchange, promoter, subsidiaries, associates and defaulting entities, assigning the probe to the SFIO.