New Delhi : Electricity watchdog CERC has granted one more month’s time till October 31 for Financial Technologies to completely divest its stake in Indian Energy Exchange (IEX), reports PTI.
The Central Electricity Regulatory Commission’s (CERC) decision came on a plea filed by Financial Technologies (India) Ltd (FTIL) seeking more time to complete the divestment process.
Against the backdrop of payment crisis at FTIL group firm National Spot Exchange Ltd (NSEL), the regulator in May had directed the company to sell stake in the power exchange by September 30.
“Considering the present stage of the divestment process, we deem it appropriate to grant one month’s time, that is till October 31, 2014 for completing the process of divestment of entire share of FTIL in IEX,” the regulator said in its order dated October 1.
In this regard, CERC has also directed the exchange to submit a compliance report by November 5.
FTIL has more than 24 per cent shareholding in IEX.
Even as it gave more time for compliance, the electricity regulator said IEX should pursue the divestment process in right earnest.
Referring to its ruling on the matter in May this year, the watchdog said, “we note that though the order was passed by the Commission on May 13, 2014… FTIL has initiated action only on July 7, 2014”. Axis Bank Capital has been appointed by FTIL as the investment banker for IEX stake sale.
FTIL has also filed an appeal before the Appellate Tribunal for Electricity against CERC’ May order while simultaneously
initiating steps to divest its entire stake in IEX.