Sebi starts investigation into governance issues at InterGlobe Aviation
The Securities and Exchange Board of India (Sebi) has initiated a preliminary enquiry into alleged corporate governance issues at InterGlobe Aviation, which operates IndiGo. According to sources in the know, the market regulator is likely to seek further details from the co-promoters of the company to ascertain the veracity of the matter.
The move comes after Indigo co-promoter Rakesh Gangwal had sought the market regulator’s intervention, alleging that the other co-promoter Rahul Bhatia had misused powers to enter into related party transactions with IndiGo. On this, the regulator will examine the disclosures made to the stock exchanges under listing regulations, according to a person privy to the development.
The market regulator has asked the company to give response to the allegations by July 19.
“We will see whether it is about corporate governance or beyond that. Sebi will look into each of the allegations flagged and accordingly take a call,” said a source.
On controlling rights, the source said both the promoters should be knowing their vested power and control within the terms of article of association. ‘’Then why such contention? What has been the IndiGo board stand over it?’’he asked.
The regulator may ask the board about the measures being taken over the disagreement between the two promoters, it is learnt.
Also, the IndiGo board has to explain the reason of not adhering with the governance norms, which specify that listed companies should have one independent woman director on board.