FTIL decided to exit the exchange business and focus on its core technology business after the Rs 5,600 crore scam surfaced at its Indian subsidiary NSEL last year.

To ensure faster recovery of dues for entities hit by the Rs 5,600-crore fraud at National Spot Exchange, the government had in October ordered its merger with parent FTIL.

Shares of FTIL slumped 20 per cent to Rs 135.75 - its lowest trading permissible limit for the day - on BSE. The stock was later trading 9.43 per cent higher at Rs 185.65.

Post merger, NSEL's entire business, properties and liabilities, among others, will get transferred to FTIL.

Shares of FTIL slumped to Rs 169.65 - its lowest trading permissible limit for the day - on the Bombay Stock Exchange (BSE).

Issuing a draft order for the proposed merger, the government on Tuesday said the move to merge the two had been decided upon in \"public interest\".

Besides, revival of buying by foreign funds after remaining sellers for several sessions, supported the upside in stock prices, brokers said.

The CERC's decision came on a plea filed by Financial Technologies India (FTIL) seeking more time to complete the divestment process.

According to the CCI, the proposed deal \"is not likely to have an appreciable adverse effect on competition in India\".

MCX-SX would not be allowed to introduce any new contract till it meets minimum networth requirement of Rs 100 crore, for which it has been given three-months.

In a September 4 letter, informing NSEL about winding- up its Monitoring and Auction Committee (MAC), the FMC had made critical references about the recovery process.

\"There was no other qualified bidder which could have picked 15 per cent stake in MCX. In fact, Kotak (Mahindra Bank) wanted to buy the entire 26 per cent,\" says a source.

Forward Markets Commission (FMC) has also asked Kotak Mahindra Bank to disclose every year to commodity exchange MCX that it is in compliance with 'fit and proper' criteria.

The CBI has finalised the case, in which departmental action may be recommended to the finance ministry against former Sebi member K.M. Abraham.

The Bombay High Court has asked the Financial Technologies' promoter to furnish cash surety of Rs 5 lakh and be present before Economic Offences Wing (EOW) twice a week, until further orders of the trial court.

The largest commodity bourse has decided to move Sebi seeking a waiver of the 2 per cent stake sale cap clamped on FTIL. According to the exchange, this cap prevents FTIL from exiting MCX completely.

The fresh chargesheet is said to detail the exact role the Multi Commodity Exchange promoter played in the Rs 5,600-crore National Spot Exchange scam that rocked the country's financial markets last year.

Earlier this month, Financial Technologies sold 6 per cent stake in Multi Commodity Exchange in two rounds for about Rs 220 crore, bringing down its shareholding to 20 per cent from 26 per cent.

At a recent meeting with NSEL management and Monitoring and Auction Committee, FMC reviewed the recovery of dues from defaulters and asked NSEL to fasten the process and file the suits for realization of money.

India would be one of the best regulated markets in the world in terms of investor's protection, but the problem is you cannot find investors. India has become a model market in terms of laws but nothing is happening in terms of prosperity.