Mumbai: The Securities and Exchange Board of India (Sebi), which is looking closely at the deal between Jet Airways and Etihad Airways, is expected to give its go-ahead only after the clauses giving veto powers to the foreign partner are diluted.
According to sources, the capital market regulator is not comfortable with the clause that requires promoters to get a written consent from Etihad before selling or transferring their shares. Further, the fact that Etihad’s representative will be getting preferential treatment over other board members while constituting the quorum has also not gone down well with Sebi as it violates the Companies Act.
Sources further add that Sebi has already indicated its stance to other government agencies, including the aviation ministry, and representatives of the two airline entities.
26/07/13 Ashish Rukhaiyar/Financial Express
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According to sources, the capital market regulator is not comfortable with the clause that requires promoters to get a written consent from Etihad before selling or transferring their shares. Further, the fact that Etihad’s representative will be getting preferential treatment over other board members while constituting the quorum has also not gone down well with Sebi as it violates the Companies Act.
Sources further add that Sebi has already indicated its stance to other government agencies, including the aviation ministry, and representatives of the two airline entities.
26/07/13 Ashish Rukhaiyar/Financial Express
