With the IndiGo indictment, has SEBI changed the rules of the game?
11 February, 2021•6 min
0
11 February, 2021•6 min
0
Getting your Trinity Audio player ready...
Why read this story?
Editor's note: Back in July 2019, newspapers were awash in headlines carrying every juicy titbit of the very public spat between Rakesh Gangwal and Rahul Bhatia, promoters of InterGlobe Aviation Ltd, which operates IndiGo, India’s largest airline. Cut to February 2021 and Gangwal is a man vindicated. Despite taking on the IndiGo management, his allegations of questionable related-party transactions and lapses in governance regulations at the airline have found a ringing endorsement in the settlement order issued by the Securities and Exchange Board of India on Tuesday. While the settlement itself is a measly Rs 2 crore and change, the order is unique in many respects: 1) A promoter shareholder whose grievances could not be redressed by the company board and other shareholders has found a sympathetic ear in the markets regulator; 2) SEBI has pretty much taken Gangwal’s side as the order finds no mention of the defence put up by the IndiGo management; 3) In a first, it details the role played by InterGlobe chairman (and former SEBI chairman SEBI) M. Damodaran in the entire affair; and 4) It is …
More in Business
Business
Infra.Market’s debt binge before IPO sets alarm bells ringing
The platform’s pre-IPO debt funding raises fresh questions about cash flows and SEBI’s role. Investors will do well to take note.
You may also like
Business
SEBI’s overdue expansion is underway, but top-level gaps persist
India’s market regulator is looking to ramp up hiring at the entry level. But what really needs attention is the constant uncertainty at the top and the lack of domain experts.
Business
How the IndiGo crisis went unnoticed in November
Despite enough warnings, no alarm bells were rung. The buck now stops with Rahul Bhatia, the promoter and managing director of India’s largest airline that is facing its biggest crisis ever.
Internet
Can SEBI get a good social media team for investor education?
With social media becoming a crucial source of financial guidance, it doesn’t help that many first-time investors remain strikingly unaware of regulations meant to protect them against unregistered entities.
