I understand FTIL owns 99.9% of NSEL which ran into a payments crisis of close to 5600+Cr as the brokers who had to pay-in to NSEL are defaulting on payments!.
NSEL does not have cash reserves or in-flows to cover this payment and would most likely default.
But what happens to FTIL, which has major ownership?
Do the creditors of NSEL have recourse to the assets of FTIL or is it upto only the paid-up capital and reserves of NSEL? How would the Indian Government and Law treaat this case?
