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Sebi starts investigation into governance issues at InterGlobe Aviation

The market regulator has asked the company to give response to the allegations by July 19

Shrimi Choudhary  |  New Delhi 

The logo of IndiGo Airlines is pictured on passenger aircraft on the tarmac in Colomiers near Toulouse | Photo: Reuters

The Securities and Exchange Board of India (Sebi) has initiated a preliminary enquiry into alleged corporate governance issues at InterGlobe Aviation, which operates 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 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 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.

ALSO READ: Co-promoter Gangwal wants expansion of IndiGo board, asks Sebi to intervene

“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 should have one independent woman director on board.

First Published: Thu, July 11 2019. 02:31 IST