Mumbai/New Delhi: Regulatory pressure has increased on Indi-Go to disclose details of the dispute between the promoters with the Securities and Exchange Board of India and the ministry of corporate affairs asking the airline to submit all documents, including the EY report that examined the issue of related-party transactions.
While Sebi has specifically asked for the EY report, the MCA has asked IndiGo to respond point-bypoint to the 10 issues raised by Rakesh Gangwal, one of the promoters. “When a promoter owning 37% stake raises an issue, that needs to be looked into,” an MCA official said, without elaborating.
Apart from the EY report — submitted to IndiGo chairman M Damodaran in March — Sebi has also sought the shareholders’ agreement. The report, which has not been made public, was commissioned by Damodaran after he took charge in January. EY was asked to study related-party transactions between IndiGo and firms affiliated to copromoter Rahul Bhatia’s IGE Group in past five years.
Subsequently, a board committee was set up to examine some protocols suggested by the EY report, but they could not be implemented due to differences between the two promoters.
The market regulator will also look at the role of directors to see if there has been any violation of securities laws. In his letter dated June 12, Bhatia had alleged that when CEO Ronojoy Dutta sought the board’s guidance in handling investor queries, Gangwal had advised him to say something on these lines, “As we are all aware, there has been a lot of speculation in the press about differences between the promoters.We have issued an extensive press release and are not planning to address any questions on this issue in this investor call.”
17/07/19 Reena Zachariah/Anirban Chowdhury/Karunjit Singh/Economic Times
To Read the News in full at Source, Click the Headline
While Sebi has specifically asked for the EY report, the MCA has asked IndiGo to respond point-bypoint to the 10 issues raised by Rakesh Gangwal, one of the promoters. “When a promoter owning 37% stake raises an issue, that needs to be looked into,” an MCA official said, without elaborating.
Apart from the EY report — submitted to IndiGo chairman M Damodaran in March — Sebi has also sought the shareholders’ agreement. The report, which has not been made public, was commissioned by Damodaran after he took charge in January. EY was asked to study related-party transactions between IndiGo and firms affiliated to copromoter Rahul Bhatia’s IGE Group in past five years.
Subsequently, a board committee was set up to examine some protocols suggested by the EY report, but they could not be implemented due to differences between the two promoters.
The market regulator will also look at the role of directors to see if there has been any violation of securities laws. In his letter dated June 12, Bhatia had alleged that when CEO Ronojoy Dutta sought the board’s guidance in handling investor queries, Gangwal had advised him to say something on these lines, “As we are all aware, there has been a lot of speculation in the press about differences between the promoters.We have issued an extensive press release and are not planning to address any questions on this issue in this investor call.”
17/07/19 Reena Zachariah/Anirban Chowdhury/Karunjit Singh/Economic Times
0 comments:
Post a Comment