Mumbai: The Securities & Exchange Board of India has issued a show-cause notice to Etihad Airways saying it had violated takeover norms while purchasing a fourth in Jet Airways, said a person familiar with the development.
The capital market regulator seeks to know why action should not be taken against a company or person for securities law violations. The notice implies that Sebi has arrived at a preliminary finding that the deal has resulted in a change in control at Jet Airways.
If Sebi sticks to this finding, Etihad may have to make an open offer. The finding may create further regulatory hurdles as Indian aviation regulations stipule that management control has to be with Indian shareholders.
15/02/14 Anirban Chowdhury & Reena Zachariah/Economic Times
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The capital market regulator seeks to know why action should not be taken against a company or person for securities law violations. The notice implies that Sebi has arrived at a preliminary finding that the deal has resulted in a change in control at Jet Airways.
If Sebi sticks to this finding, Etihad may have to make an open offer. The finding may create further regulatory hurdles as Indian aviation regulations stipule that management control has to be with Indian shareholders.
15/02/14 Anirban Chowdhury & Reena Zachariah/Economic Times
